US President Donald Trump has intimated a likely breakthrough in trade negotiations with India as the impending August 1 retaliatory tariff deadline looms large. After recently clinching a deal with Indonesia, Trump indicated that something “similar” might happen with India and a couple of other countries soon.
The comment has come as Indian and American negotiators are holding high-level negotiations in Washington to seal a much-delayed bilateral trade agreement.
India was among the 14 nations that received tariff letters from the United States last week. However, Trump’s statement implies India could be exempted under a negotiated settlement, similar to the concessions granted to Indonesia.
Indonesia Deal Sets the Tone
Trump’s optimism comes after a significant development with Indonesia. The US had previously stated it would impose a 32% tariff on Indonesian products. But following fruitful negotiations, the two nations agreed to lower the tariff to 19%.
Calling the result “terrific,” Trump explained, “He (the Indonesian President) opened up the entire country to trade with the United States. We were not able to go in and trade. I think something like that would happen with India, and we have a couple of others.”
VIDEO | Joint Base Andrews, Maryland: US President Donald Trump (@POTUS) says, “We insist on opening up the country… which is a big deal. Indonesia was great… he’s a great president. We made a terrific deal, he opened up the entire country to trade with the United States. We… pic.twitter.com/u56WU8M2xO
— Press Trust of India (@PTI_News) July 16, 2025
His tone suggested the US was rewarding friendly trade partners with new, lower tariff arrangements.
India Trade Deal “Close,” Says Trump
US President once again made it clear that a settlement with India was one of the more probable ones to be realized before the August 1 deadline. He also mentioned that he was “very happy” with the letters that India had written and talked about going on with the negotiations.
We made a deal with the United Kingdom, we made a deal with China, we’re close to making a deal with India,” Trump stated, when asked for the number of agreements that are likely to come before the tariff implementation.
The US had sent 14 countries, including Japan, South Korea, Bangladesh, and Myanmar, tariff notifications, Bloomberg reported.
Talks Underway in Washington
Trump’s comments were made during a four-day Washington bilateral negotiation between Indian and US officials. The talks commenced on Monday and were scheduled to end on July 17. According to sources, both sides are hopeful of coming to an agreement that can save them from punitive tariffs.
India has been trying to keep sweet trade deals with the US despite Trump’s hawkish tariff policy, which has already bitten allies. Within days, Trump had imposed a 35% tariff on Canadian and a 50% tariff on Brazilian exports. He even threatened a 100% tariff on Russia unless a peace agreement is achieved in Ukraine within 50 days.
Possible Relief Amid Tariff Storm
If the US and India are able to reach an agreement prior to August 1, then this would be a huge relief for Indian exporters and a diplomatic success for both nations. With Trump’s tariff tsunami leaving no major trading partner untouched, a settlement with India would demonstrate flexibility in his overall protectionist stance, if his conditions are fulfilled.
Meanwhile, everyone is looking to the last day of talks and whether New Delhi will be able to clinch a deal just in time.
