US President Donald Trump has signalled strong optimism about reaching a significant trade agreement with India, emphasising his administration's demand for the removal of all trade barriers—a move he described as "unthinkable" given the current restrictions faced by American businesses in the Indian market.

Trump stated, “India, I think we are going to reach a deal where we have the right to go and do trade. Right now, it's restricted. You can't walk in there, you can't even think about it. We are looking to get a full trade barrier dropping, which is unthinkable. I am not sure that that is going to happen. But as of this moment, we agree that going to India and trade...”.

The remarks come at a critical juncture, with a July 9 deadline looming for the expiration of a 90-day pause on the US’s reciprocal tariffs against Indian goods. The US had earlier announced a 26% reciprocal tariff on Indian imports, which was temporarily suspended to allow for negotiations.

Trump has made it clear that if a deal is not reached, the US is prepared to impose these tariffs, stating, “We can do whatever we want. We could extend it. We could make it shorter. I'd like to make it shorter. I'd like to just send letters out to everybody: Congratulations, you're paying 25 per cent”.

Trump’s push for a comprehensive agreement follows the recent conclusion of a trade deal with China, which he cited as evidence of his administration’s ability to secure favorable terms. He hinted that a similarly “very big” deal with India could soon follow, reiterating his administration's broader strategy of demanding fairer access for American exports and threatening high tariffs on countries that maintain restrictive trade practices.

Negotiations between the two countries have been intense, with the US pressing India to significantly reduce duties on American agricultural and dairy products and to allow greater market access for genetically modified crops. India, however, has been cautious, citing concerns over food security, environmental protection, and the welfare of its domestic farming sector. Indian Commerce and Industry Minister Piyush Goyal emphasised that any agreement would be “fair, equitable and balanced,” and that India’s national interests would remain paramount throughout the talks.

US Commerce Secretary Howard Lutnick echoed this optimism, suggesting that both sides are close to finding common ground, and that a deal could be finalised soon. He stressed the importance of opening up India’s agricultural sector, a key sticking point in the negotiations.

As the July 9 deadline approaches, both sides are working intensively to resolve outstanding issues. While Trump’s demand for the complete removal of trade barriers is seen as ambitious—if not unrealistic—there is clear momentum towards at least an interim agreement that could avert the imposition of new tariffs and lay the groundwork for a deeper economic partnership.

Based On ANI Report