Donald Trump hints at 'very big' trade deal with India amid report of roadblocks

US President Donald Trump on Friday hinted at the possibility of a “very big” trade deal with India, days before the scheduled end of Washington’s 90-day suspension of a steep additional tariff on Indian goods.

“Everybody wants to make a deal and have a part of it… We have one coming up, maybe with India. Very big one,” Trump said, a day after reportedly signing a trade agreement with China.

“Remember a few months ago, the press was saying, 'You really have anybody of any interest?' Well, we just signed with China yesterday. We're not going to make deals with everybody. Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent. That's the easy way to do it.”

The US imposed an additional 26% tariff on Indian exports on April 2 but suspended it until July 9. India continues to face a baseline US tariff of 10% and is pushing for a full exemption from the higher reciprocal duty under an interim deal currently under negotiation.

Both countries are aiming to strike an interim trade pact ahead of a broader bilateral trade agreement (BTA), for which talks are expected to continue into the fall. A PTI report last month suggested the interim agreement could be finalised by June 25, though there has been no official confirmation of a deal so far.

Meanwhile, a Reuters report, citing Indian officials familiar with the matter, claimed that the trade talks between India and the US have hit a roadblock over disagreements on import duties for auto components, steel and farm goods.

The United States retained its position as India’s largest trading partner for a fourth consecutive year in 2024-25, with bilateral trade reaching USD 131.84 billion. India posted a trade surplus of USD 41.18 billion with the US during the year, up from USD 35.32 billion in 2023-24.

Washington has raised concerns over the widening trade imbalance.

While the Trump administration requires Congressional approval to reduce tariffs below Most Favoured Nation levels, it retains executive authority to revoke reciprocal duties imposed on specific countries, including India.

Trump said the trade deals with countries like China and potentially India are “starting to open up” markets in ways that “never really could have happened” earlier.