Trump Says U.S. Near Trade Deal with India Despite New Tariff Moves

In a significant turn on the world trade map, U.S. President Donald Trump announced the United States is on the verge of a trade deal with India, while his government readies new tariffs on several countries.

Trump made the announcement in a press briefing at the White House on Tuesday, where he laid out salient features of the current trade policy trajectory of the U.S. government.

“We've made a deal with the United Kingdom, we've made a deal with China, we've made a deal -- we're close to making a deal with India. Others we met with, we don't think we're going to be able to make a deal. So we just send them a letter,” said the President.

The declaration was made when the administration started sending official notices to some of its key trade partners — Japan, South Korea, Thailand, and Bangladesh — of impending tariff increases set to take effect on August 1.

The messages indicate the beginning of a larger plan to re-examine current trade alliances for more equitable terms for American business, according to the administration.

We're sending them letters to different countries explaining how much tariffs they have to pay. Some will perhaps adjust a little based on whether they have a cause, we're not going to be unfair about it," Trump said.

Talks between New Delhi and Washington have intensified over the past few months, with both sides attempting to finalize a narrow trade agreement mainly centered on reciprocal tariff cuts. But negotiations are still at a logjam over some contentious issues — particularly India's opposition to wider market access for its agriculture and dairy industries.

These industries are politically risky in India, where agriculture sustains almost half of the population, though it contributes a mere 16 percent to the GDP. Food safety standards concerns and rural livelihoods concerns have kept Indian policymakers on their toes, with agriculture generally excluded from the free trade agreements of the country.

In return, New Delhi is pressuring Washington to roll back tariffs on critical labour-intensive items like footwear, apparel, and leather goods — sectors crucial to employment creation in India.