APPresident Donald Trump speaks at an event to promote his domestic policy and budget agenda in the East Room of the White House, Thursday, June 26, 2025, in Washington. (AP Photo/Mark Schiefelbein)
United States President Donald Trump on Thursday indicated that a major trade agreement with India could be on the way. Speaking at the 鈥淏ig Beautiful Bill鈥 event at the White House, Trump confirmed a deal with China and hinted at an even more significant development involving India.鈥淓verybody wants to make a deal and have a part of it,鈥 Trump said. 鈥淩emember a few months ago, the press was saying, 鈥榊ou really have anybody of any interest? Well, we just signed with China yesterday. We are having some great deals. We have one coming up, maybe with India. Very big one. Where we’re going to open up India, in the China deal, we are starting to open up China,鈥 he was quoted as saying by ANI.He also made it clear that not every country would get the same treatment. 鈥淲e’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, 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,鈥 Trump added.India says deal will be fair, balanced, and mutually beneficialIn response to growing speculation, Commerce and Industry Minister Piyush Goyal confirmed earlier this month that New Delhi and Washington are actively working on a bilateral trade pact.鈥淧M Narendra Modi and US President Trump met in February 2025… Both our leaders have decided to enter into a bilateral trade agreement which will be mutually beneficial for both the economies, businesses on both sides and the people of both countries,鈥 Goyal said during a press conference on 10 June.Live Events鈥淲e are negotiating to make a nice, fair, equitable and balanced agreement to promote business,鈥 he said.Goyal also underlined the importance of the strategic relationship between the two countries. 鈥淭he United States and India are very close friends, allies and strategic partners,鈥 he said, calling the talks 鈥渁n opportunity to expand bilateral trade and strengthen the partnership.鈥滾utnick: India鈥揢S agreement is 鈥榥ot-too-distant鈥橭n the American side, US Commerce Secretary Howard Lutnick expressed confidence that the India鈥揢S trade deal was within reach. Speaking at the US鈥揑ndia Strategic Partnership Forum earlier in June, Lutnick said both sides had made considerable progress.鈥淚 think to be in a very, very good place, and you should expect a deal between the United States and India in the not-too-distant future because I think we found a place that really works for both countries,鈥 Lutnick said.When asked about his outlook, Lutnick replied, 鈥淰ery optimistic,鈥 adding lightly, 鈥淚t could be sort of the way I come across.鈥漊S officials are reportedly focused on easing market access barriers and aligning standards on medical devices, digital trade, and agricultural exports. India, meanwhile, is expected to press for more favourable terms on services and regulatory protections for its domestic sectors.China deal shifts attention back to IndiaWhile Trump offered few details about the India talks, he was more forthcoming about the recently concluded China agreement. The deal鈥攃onfirmed earlier this week鈥攔evived terms from a stalled framework in Geneva, which includes Beijing resuming rare earth exports to the US.The Geneva understanding, reached in May, had been delayed as China imposed countermeasures in response to new US tariffs. These included suspending the export of critical minerals, disrupting supply chains for industries including electric vehicles, defence manufacturing and semiconductors.Posting on Truth Social, Trump wrote in all caps, 鈥淥ur deal with China is done.鈥 He confirmed that China would supply 鈥渇ull magnets, and any necessary rare earths…up front.鈥漈he White House later clarified that both governments had agreed to a framework to implement the Geneva accord. 鈥淭he administration and China agreed to an additional understanding for a framework to implement the Geneva agreement,鈥 a senior official said, adding that the focus was 鈥渁bout how we can implement expediting rare earths shipments to the U.S. again.鈥滳ommerce Secretary Lutnick added: 鈥淭hey鈥檙e going to deliver rare earths to us鈥 and once that begins, 鈥渨e’ll take down our countermeasures.鈥漌hile India is not a part of the China rare earth agreement, the timing of Trump鈥檚 comments suggests that New Delhi is next in Washington鈥檚 trade queue.The ongoing discussions reflect a shift in tone from previous years, when trade tensions between India and the US had surfaced over issues like digital services taxes, medical device pricing, and data localisation rules. Now, both countries are looking for ways to harmonise interests.For India, a well-crafted trade agreement with the US could help improve access for its services sector, encourage inward investment, and formalise economic ties with one of its most significant partners.The coming weeks may determine whether this 鈥渧ery big鈥 deal鈥攄escribed in Trump鈥檚 words鈥攖akes final shape. For now, it鈥檚 a waiting game, but one with real stakes for Indian businesses, policymakers and consumers alike.(With inputs from ANI)(You can now subscribe to our Economic Times WhatsApp channel)
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onIndia US trade dealDonald Trumpbilateral trade agreementPiyush Goyaltrade negotiations India USIndia US economic relationsUS Commerce Secretary Howard Lutnickstrategic partnershipChina trade agreementWhite House(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
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