India US Tariffs News Update: President Donald Trump on Friday suggested that Washington and New Delhi are in the process of finalizing a “very significant trade agreement” with India before the US tariff suspension expires on July 9.
The United States announced reciprocal tariffs on Indian commodities at a rate of 26% on April 2. Subsequently, a 90-day pause period was invoked, which concludes on July 9.
The US President asserted that agreements are not being made with any nation, stating, “Everyone wants to make a deal and be a part of it.” Do you recall a few months ago when the press was questioning whether you had anyone of interest? Yesterday, we executed an agreement with China. We are currently offering some exceptional promotions. One is imminent, potentially in collaboration with India. An enormous one. India will be the destination of our expansion. “We are initiating the process of opening up China in the China deal.”
Trump did not provide any additional information regarding the specifics of the agreement with China or the probability of a significant trade agreement with India during his speech at the Big Beautiful Bill event in Washington, DC, on Thursday local time.
“We will not negotiate with all parties.” For some, we will simply send them a letter expressing our gratitude immensely. You are required to pay 25, 35, or 45 percent. That is the most straightforward approach, and my colleagues are opposed to it. He stated, “They are interested in participating in a portion of it; however, they are interested in executing a greater number of transactions than I would.”
US trade negotiators were in India earlier this month to deliberate on the agreement. The United States had requested that countries submit their most competitive trade proposals in anticipation of the July 8 reciprocal tariff deadline, according to the White House. “I can verify the letter’s content and merits.” According to White House spokesperson Karoline Leavitt, the United States Trade Representative (USTR) sent this letter to all of our trading partners as a courteous reminder that the deadline is approaching.
Howard Lutnick, the Secretary of Commerce of the United States, had stated that the country’s objective was to increase exports to India in order to address the trade deficit and revive advanced manufacturing. He also stated that the two countries had “discovered a mutually beneficial location.”
In the interim, Indian officials have suggested that the country’s strategic interest is to diversify oil and defense procurement. Additionally, they have suggested that sourcing more from the United States could significantly help bridge the goods trade gap, as India’s refining capacity has been increasing in tandem with oil import dependency, which reached 90% in April 2025.
