US President Donald Trump on Tuesday indicated that the United States is making key progress in gaining access to Indian markets, attributing his administration's tariff policy to pulling down decades-old trade barriers. The remarks are an indication of renewed bilateral talks momentum as a high-level Indian trade delegation negotiates in Washington.
Speaking following the announcement of a trade deal with Indonesia, Trump described his aggressive use of tariffs as a game changer in US-Asia trade. "We're going to have access into India," he said. "You have to understand, we had no access into any of these countries. Our people couldn't go in. And now we're getting access because of what we're doing with the tariffs."
Though the White House has not yet released details of how far along the proposed US-India trade deal is, Trump's statement indicates that both parties are closing in on a deal.
India's Commerce Ministry has sent a high-level delegation to the US to carry on the negotiations. The mission, headed by chief negotiator Rajesh Agrawal, is said to be concentrating on protecting India's dairy and farm sectors, which are sensitive points in the trade talks.
Trump reiterated his belief that the pressure exerted through tariffs has produced tangible benefits. “Now we’re getting access,” he said, underscoring that American businesses are now seeing new opportunities in markets that were previously closed off.
Trump has made repeated assertions that a trade agreement with India is almost done, although there are still a few irritants. Significantly, although several major trading partners—including the EU, South Korea, Canada, Mexico, and Japan—have all been sent letters indicating possible 25% to 35% retaliatory tariffs from August 1, India has not.
Analysts say this may reflect a more positive chapter in US-India trade relations with space for bargaining, not brawling.
With the two countries maintaining talks and Trump reaffirming the merits of his trade strategy, optimism is mounting over the chances of a new trade deal. For the moment, both sides seem to be working through their strategic and economic interests and keeping the lines of communication open.
The ultimate shape of the agreement is yet to be determined, but Trump's comments and the visit to Washington by India's chief trade negotiators indicate a commitment to finding a resolution to outstanding issues.
