In a strong signal toward a new phase of bilateral trade relations, former U.S. President Donald Trump has hinted that a trade deal between India and the United States is on the horizon — and it could mirror the recently finalized pact with Indonesia. Speaking at a public event, Trump emphasized that the United States would gain full access to the Indian market, something he claimed Washington “never had before.”
“India, basically, is working along the same lines,” Trump said. “We are going to have access to India. You have to understand — we had no access to any of these countries. Our people couldn’t go in, and now we are getting access because of what we are doing with the tariffs.”
Trump’s remarks come amid rising anticipation over a possible India-US trade agreement that could mark a turning point in economic engagement between the world’s two largest democracies. The deal, he said, would offer a fair and mutually beneficial pathway for both nations, similar to the agreement recently reached with Indonesia.
Deal Structure Mirrors Indonesia Pact
While referring to the U.S.-Indonesia agreement as a blueprint, Trump proudly claimed that the U.S. negotiated zero tariffs for its exports, while Indonesia would be paying a 19% tariff on select goods — especially copper, a high-value commodity for the Southeast Asian nation.
“We made a deal with Indonesia. I spoke to their really great president… and we made the deal. We have full access to Indonesia. Everything. We will pay no tariffs,” Trump said. “The biggest part of the deal is that we now have access to their copper, and they’re paying tariffs while we’re not.”
The statement highlighted Trump’s broader strategy of negotiating deals that favor U.S. interests, particularly in sectors like mining, manufacturing, and technology exports.
India May See Reduced Tariffs Below 20%
According to a Bloomberg report, the potential U.S.-India trade deal could avoid a formal tariff demand letter altogether — a significant shift from Washington’s recent aggressive trade posture.
Sources cited in the report suggest that India might be offered a starting tariff rate below 20%, a sharp decline from the earlier suggested 26%. While the initial deal may be limited in scope, it would lay the groundwork for deeper negotiations, signaling a thaw in trade tensions and a new commitment to cooperation.
This approach reflects Trump’s broader strategy: reward nations open to trade cooperation with relief, while warning others of steep tariff penalties. So far, deals with the UK, Vietnam, and Indonesia have been confirmed, with Vietnam reportedly surprised by a sudden 20% tariff and still pushing for reductions.
Strategic Significance for India
If finalized, India will join a small and exclusive group of countries that have secured trade relief from Washington. For New Delhi, the deal could translate into greater access to American technologies, defense partnerships, and investment inflows, particularly in sectors like renewable energy, pharmaceuticals, and electronics manufacturing.
Trade experts view this development as a strategic balancing act for India. While strengthening ties with the U.S., India continues to maintain economic relations with traditional partners like Russia and China. A favorable deal with Washington could help India position itself as a reliable trade and investment destination amid shifting global supply chains.
While no formal agreement has yet been signed, Trump’s open reference to India’s inclusion in the new U.S. trade strategy is a strong indication that a joint statement or preliminary agreement may be on the way. Both countries are expected to continue backchannel negotiations in the coming weeks.
With tariff wars reshaping global trade and supply chains, India’s inclusion in Washington’s good books may signal a more secure economic future for key industries — and a bigger role in global commerce.
As Trump concluded in his speech,
“A couple of other deals are going to be announced soon. It’s about access — and now, we’re getting it.”
