New York: US President Donald Trump has indicated that the US is “very close” to a trade deal with India, and it may be wrapped up soon.
“We’re very close to a deal with India, where they open it up” to imports from the US, he said on Wednesday.
At another point in his interaction with reporters, he mentioned the trade deal announced on Tuesday with Indonesia and said, “We have another one coming up, maybe with India. I don’t know. We’re in negotiation.”
The Indian negotiating team, led by Rajesh Agrawal, the special secretary in the Commerce Department, came to Washington on Monday and is in talks with US officials to finalise a deal.
According to Politico, the upcoming announcement “is expected to be only the first phase of a trade deal, with a more robust and comprehensive agreement to come in the fall.”
That would be the more comprehensive bilateral trade agreement.
Trump spoke to reporters with Bahrain’s Crown Prince Salman bin Hamad Al Khalifa at his side before their meeting, at which trade and investments will figure, he said.
He has been scouring for international investments in the US and speaking of the trillions he is bringing in.
Al Khalita said, “We’re very happy to be announcing $17 billion worth of deals that are coming to the United States.”
Trump has not sent India the tariffs notice that was sent out to several countries imposing tariffs as high as 35 per cent on pure trade considerations if they did not complete a deal by August 1.
That could be a sign that he expects an India deal soon.
On Tuesday, Trump said that India is working on a trade deal on the lines of the one reached with Indonesia.
According to him, under the Indonesia deal, Jakarta will not charge any tariffs on imports from the US, while the US will collect a 19 per cent tariff on Indonesian exports.
Talks began as early as February with India, and Trump and US officials have said several times that a trade deal was imminent, but so far it hasn’t panned out.
After Vice President JD Vance’s visit to India in April, US Commerce Secretary Scott Bessent said that India would be among the first to sign a trade deal, and it may come in early May.
In June, after a call with Prime Minister Narendra Modi, Trump said, “I think Modi is a fantastic man. I spoke to him last night. We’re going to make a trade deal with Modi of India.”
About the possibility of an early trade deal, Bessent had said that India has “fewer non-tariff trade barriers, obviously, no currency manipulation, very, very little government subsidies, so that reaching a deal with the Indians is much easier.”
But issues relating to agriculture, access for Indian professionals to the US, and intellectual property have apparently complicated the talks.
Two other developments are casting shadows over a trade deal.
Trump has said that he would impose a secondary tariff of 100 per cent on countries that buy energy from Russia, if Moscow does not make peace with Ukraine by early September.
Even though it is aimed at Russia to squeeze its financial pipeline and to add pressure on it for a peace deal, the punitive tariff would hit India.
At the same time, he has dissuaded Republican senators from going ahead with a bill seeking to impose a 500 per cent tariff on those buying Russian energy.
Another issue is a ten per cent tariff Trump has threatened on members of the BRICS that he called “anti-American.”
(IANS)
