Trump hints at ‘very big’ deal with India as tariff deadline nears

US President Donald Trump on Thursday hinted that a “very big” deal with India was in the works, even as Washington signed a trade deal with Beijing.

“…We just signed (trade deal) with China. We’re not going to make deals with everybody… But we’re having some great (trade) deals. We have one coming up, maybe with India, a very big one,” Trump said, while speaking at a White House event.

“We’re going to open up India. In the China deal, we’re starting to open up China. Things that never really could have happened, and the relationship with every country has been very good,” he said.

In his speech, Trump said that the White House will not make deals with every nation.

“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%. That’s the easy way to do it, and my people don’t want to do it that way. They want to do some of it, but they want to make more deals than I would do,” he said.

On 10 June, commerce minister Piyush Goyal said India and the US were in the process of negotiating a fair and equitable trade agreement that will benefit both economies.

Indian trade negotiators, led by chief negotiator Rajesh Agarwal, have arrived in Washington, DC, ahead of a crucial round of talks, Bloomberg reported.

With the 9 July deadline fast approaching, when higher US tariffs on Indian goods are likely to come into effect, the outcome of the talks will have far-reaching implications for the $100 billion-plus trade relationship between India and the US.

Talks are expected to focus on resolving lingering disputes and preventing an escalation in trade tensions. The Indian delegation will participate in two meetings to resolve issues stalling the progress, Bloomberg reported, citing people familiar with the development.

A key sticking point remains the US demand that India open its market to genetically modified crops—a proposal the Indian side has firmly resisted, arguing it would adversely impact its farmers.

Indian negotiators are also pushing for a deal that addresses both sectoral and reciprocal tariffs, seeking benefits for Indian exports and those from the US.