In New Delhi, people are talking about a new trade deal between India and the US. Officials say it’s still too early to discuss specific details like cutting taxes (tariffs) on goods. This comes after US President Donald Trump mentioned that India promised to lower these tariffs on American products. Trump claimed that India has high tariffs, which makes it hard for businesses from the US to sell their products there.
According to discussions that took place earlier this year, India and the US plan to negotiate a trade agreement that benefits both countries by the fall of 2025. Talks about tariffs and other trade issues have continued since Indian Prime Minister Narendra Modi visited Washington last month. Both countries have important interests to consider, so they need to communicate and negotiate carefully.
In the media, Trump once again stated that the US is treated unfairly in trade by many nations, including India. He said that India has “massive tariffs,” making it difficult for American products to enter the Indian market. He claimed that because someone is finally pointing out these issues, India has agreed to cut tariffs.
However, these claims lack backup from real trade numbers. According to the US trade representative, American exports to India were around $41.8 billion out of $129.2 billion in overall trade in 2024. When asked about Trump’s comments, Indian Foreign Secretary Vikram Misri said he couldn’t provide details because the discussions are still going on. He emphasized that India has signed trade agreements with many countries recently, which included tax reductions.
India has made significant tariff cuts for developed countries like Australia and Switzerland in past agreements, and they are also negotiating with the EU and the UK. The Indian officials reminded everyone that the current discussions with the US should be seen in the context of these ongoing negotiations. They want to deepen their trade relationship by making it easier for each country to access markets, reduce barriers, and improve supply chains.
In earlier talks during Trump’s first term, India and the US had worked on a limited trade deal, but they didn’t reach an agreement. India has already reduced tariffs on some American goods, like bourbon whiskey and premium motorcycles, and they are looking to cut more tariffs as part of this potential trade deal.