India is negotiating a trade deal with the United States along the same lines as the one recently announced with Indonesia, US President Donald Trump stated. According to him, this deal will allow greater American access to the Indian market.
Under the deal with Jakarta, a 19 per cent tariff will be imposed on imports into the US, but there will be no tariffs on US exports to Indonesia, IANS reported.
Speaking to reporters in Washington on Tuesday, Trump said, “India basically is working along that same line,” and added, “We’re going to have access into India.” Negotiators from both countries are working to finalize a bilateral agreement before the August 1 deadline, which Trump has set for securing trade deals or imposing retaliatory tariffs.
The US president has already sent formal warnings to several nations, including India and members of the European Union, threatening tariffs as high as 35 per cent if agreements are not reached by the deadline.
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It remains uncertain whether Trump envisions an identical structure to the Indonesian deal something that could prove politically and economically challenging for India or if India will be required to offer other forms of concessions.
Concerns over tariff structure and trade imbalance
If the trade pact between India and the US mirrors the terms of the Indonesia agreement, India could face a 19 per cent tariff on its exports to the US while allowing duty-free access for American imports — a potential blow to India’s trade balance, according to IANS report.
It is still unclear what specific terms are being discussed, but any significant concessions could lead to domestic pushback within India.
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Tariffs on Russian energy could affect India
Trump also addressed geopolitical concerns, claiming that Russian President Vladimir Putin could agree to a peace deal with Ukraine within a 50-day window. If not, India and other nations purchasing Russian energy may be hit by a 100 per cent punitive tariff.
“I don’t think 50 days is very long, and it could be sooner than that,” he said when asked about the September 2 deadline. The move is part of Trump’s broader plan to pressure Moscow into a ceasefire by targeting countries that continue to fund the Russian war effort through energy imports.
In connection with this, Senate Republican leader John Thune said he was holding off on advancing a bill proposing a 500 per cent tariff on Russian energy imports, as Trump has expressed doubts about the need for such legislation, asserting that he can act unilaterally.
On trade access more broadly, Trump said, “You have to understand, we had no access into any of these countries. Our people couldn’t go in. And now we’re getting access because of what we’re doing with the tariffs.” He also noted Indonesia’s reserves of high-quality copper and rare earth minerals, highlighting the strategic nature of the trade realignment.
