After signing pact with China, Trump hints at ‘very big’ trade deal with India

US President Donald Trump has announced that America has inked a trade deal with China, while hinting that a “very big” deal with India is in the offing.

The US president, however, also clarified that his country will not make deals with everyone.

“We're not going to make deals with everybody. Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent. That's the easy way to do it, and my people don't want to do it that way. They want to do some of it, but they want to make more deals than I would do," Trump said while addressing the ‘Big Beautiful Event’ at the White House on Thursday (June 26).

Also read: After phone call with Modi, Trump repeats claim he stopped India-Pakistan war

‘Going to open up to India’

“We’re going to open up India. In the China deal, we’re starting to open up China. Things that never really could have happened, and the relationship with every country has been very good,” he said.

The US president’s statement comes days after both India and US officials held four-day closed-door talks on a mega trade deal.

According to reports, the deal had focused on more market access for industrial and agricultural products in both countries, slashing tariffs and relaxing tariff barriers.

Who wants what?

The US wants duty concessions on certain industrial goods, automobiles – especially electric vehicles, wines, petrochemical products, dairy, and agricultural items like apples, tree nuts, and genetically modified crops, PTI said quoting sources privy to the discussions.

India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact.

The agreement aims to raise the annual bilateral trade between India and the US from the current $190 billion to $500 billion by 2030.

Also read: Amid reciprocal tariff, NITI Aayog suggests 'dual-track approach' in India-US trade

July 9 deadline

While both sides are trying to finalise the pact before July 9, for the next round of talks, the Indian team may visit the US soon to discuss both the interim and first tranche or phase of the proposed bilateral trade agreement, sources told PTI.

The high tariffs, announced by the US on April 2, were suspended by the Trump administration till July 9.

On April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from the additional 26 per cent tariff.

"We are very keen, we are engaged, we are trying. Both sides are trying, but both sides have to be happy," sources had earlier told PTI when asked if the two countries are keen to finalise an interim trade agreement by July 9.

Also read: Expect US-India trade deal in not-too-distant future: US commerce secy

Ministers drop hints

US Secretary of Commerce Howard Lutnick, while speaking at the US-India Strategic Partnership Forum earlier this month, had said that a trade deal between both countries could be finalised soon.

"I think to be in a very, very good place, and you should expect a deal between the United States and India in the not-too-distant future because I think we found a place that really works for both countries," ANI quoted him as saying.

Also read: India, US desire to give preferential market access to businesses: Goyal

Union Commerce and Industry Minister Piyush Goyal also recently confirmed that India and the US were working out a trade agreement that would benefit both economies.