Trump Signals Imminent Trade Deal With India, Warns Of Steep Tariffs On Japan

Speaking aboard Air Force One, Trump suggested that India could be close to making concessions on market access for American firms, potentially clearing the way for a reduced tariff framework.

India and the US are currently working to resolve differences on key issues such as import duties on auto parts, steel, and agricultural products.

Source : PTI

As trade negotiations intensify ahead of a looming tariff deadline, US President Donald Trump signalled optimism around reaching a bilateral trade agreement with India.

Speaking aboard Air Force One, Trump suggested that India could be close to making concessions on market access for American firms, potentially clearing the way for a reduced tariff framework, reported Reuters.

"Right now, India doesn't accept anybody in. I think India is going to do that, if they do that, we're going to have a deal for less, much less tariffs," Trump said. He also indicated that India may act in time to avoid the 26 per cent tariff rate he previously announced on April 2 but temporarily suspended until July 9.

Washington and New Delhi Narrow Differences on Tariffs

India and the US are currently working to resolve differences on key issues such as import duties on auto parts, steel, and agricultural products. The negotiations have picked up pace with Indian officials extending their stay in Washington last week through Monday to iron out the remaining concerns.

According to Indian government sources, both sides are actively pursuing a resolution to avoid a sharp increase in reciprocal tariffs, which could rise from 10 per cent to 27 per cent once the 90-day pause expires. A White House official confirmed that India remains a top priority for the administration in the run-up to the July 9 deadline, ahead of other trading partners, including Japan.

Treasury Secretary Scott Bessent reinforced the positive outlook during an appearance on Fox News. “We are very close with India,” he said when asked about the progress in trade talks. He noted that any resulting deal would lower barriers for US goods and support India in staving off higher tariffs.

Indian Foreign Minister Subrahmanyam Jaishankar, speaking at an event in New York, described the negotiations as complex but necessary. "We are in the middle -- hopefully more than the middle -- of a very intricate trade negotiation," he said. While expressing hope for a breakthrough, he added, "Obviously, my hope would be that we bring it to a successful conclusion. I cannot guarantee it, because there's another party to that discussion." He acknowledged that compromise would be required on both ends, stating there "will have to be give and take" for a deal to be reached.

Japan Faces Harsher Terms as Deadline Nears

While talks with India appear to be moving forward, President Trump cast doubt on the possibility of a deal with Japan. Citing unresolved trade issues, Trump expressed frustration over Tokyo’s refusal to accept US-grown rice, even as Japanese automakers continue to dominate the American car market.

“We've dealt with Japan. I'm not sure we're going to make a deal. I doubt it,” Trump told reporters. He hinted that tariffs on Japanese imports could exceed previously proposed levels, possibly reaching 30 per cent or even 35 per cent. "So what I'm going to do, is I'll write them a letter saying we thank you very much, and we know you can't do the kind of things that we need, and therefore you pay a 30 per cent, 35 per cent or whatever the numbers that we determine," he said.

Japan’s stance has stood in contrast to that of the United Kingdom, which has already agreed to a limited arrangement with the US. Under that deal, Britain accepted a 10 per cent US tariff on goods including vehicles in return for preferential treatment for aircraft engines and beef exports.

As the July 9 deadline approaches, the Trump administration continues to weigh its options while seeking leverage in bilateral trade talks. For now, India appears closer to striking a compromise, while Japan remains at risk of facing some of the steepest tariffs yet.