President Donald Trump on Tuesday expressed optimism about ongoing trade negotiations with India, stating that discussions were advancing positively and that he expects the two countries to finalize a deal soon.
“I think we’ll have a deal with India,” Trump told reporters during a brief exchange outside the White House. He referred to Indian Prime Minister Narendra Modi’s recent visit, noting, “The prime minister, as you know, was here three weeks ago, and they want to make a deal.” Modi had visited Washington in late February, reinforcing bilateral ties and initiating discussions aimed at resolving trade disputes.
Trump’s remarks come on the heels of an update from Treasury Secretary Scott Bessent, who also conveyed a sense of momentum in trade discussions between the U.S. and India. According to Bessent, the two nations are nearing a consensus. “We’re very close on India,” Bessent stated during a White House press briefing, signaling that key sticking points in the negotiations might soon be resolved.
In addition to India, Bessent mentioned that the U.S. is actively pursuing trade agreements with other major Asian economies. He said the administration has engaged in “substantial talks” with Japan about a potential trade pact. Regarding South Korea, he indicated that “the contours of a deal” were starting to take shape, suggesting that progress in the broader Asia-Pacific trade landscape is underway.
Vice President JD Vance had also engaged with Modi recently, underscoring the high-level commitment both nations are investing in sealing a trade deal. “The two leaders made some very good progress, so I could see some announcements on India,” Bessent remarked, hinting that formal agreements or policy announcements could follow soon. However, he did not specify an exact timeline for when these outcomes might be expected.
Bessent emphasized that negotiating with India offers unique advantages due to its existing tariff structures. “A country like India, which has the posted and ready tariffs, it’s much easier to negotiate with them,” he said, highlighting that India’s transparent and pre-established tariff system facilitates smoother negotiations compared to countries with more ambiguous or fluctuating trade policies.
Meanwhile, economist Raghuram Rajan, a former Reserve Bank of India governor and currently a finance professor at the University of Chicago Booth School of Business, noted the strategic benefits for India in reducing tariffs through a deal with the U.S. “India benefits hugely if it can negotiate tariffs to a much lower level, even while some other countries have it at a higher level,” Rajan explained during an appearance on CNBC.
He further elaborated on the potential impact such a deal could have on India’s global economic appeal. “It may cause a lot of companies to look at India in a new light, especially given the large Indian domestic market,” Rajan added. His comments highlight the potential for India to become a more attractive destination for foreign investment if trade barriers are lowered, particularly in comparison to countries with more restrictive tariff policies.
The Trump administration has intensified efforts to cement trade partnerships in the aftermath of the president’s sweeping tariff announcements. These initiatives include outreach to key global allies and trading partners aimed at renegotiating or creating new agreements that align more closely with American economic interests.
“We have 18 important trading relationships, we will be speaking to all of those partners, or at least 17 of them, over the next few weeks. Many of them have already come to Washington,” Bessent noted. This signals a broad, coordinated effort by the administration to engage in a comprehensive review and realignment of U.S. trade policies with multiple nations, while prioritizing those where mutual agreement appears feasible.
Bessent later clarified that active discussions are currently underway with 17 of those 18 partners, specifically excluding China. “Trading relationships with 17 partners are in motion,” he said, making clear that the administration is focusing its attention elsewhere amid ongoing tensions and complex trade issues with Beijing.
The exclusion of China from these ongoing negotiations further emphasizes the strategic shift in U.S. trade policy under Trump, which has focused on bilateral agreements and reducing dependency on countries with which the U.S. has significant trade deficits or unresolved disputes.
In the case of India, the U.S. has long sought greater market access for American companies, particularly in sectors such as agriculture, technology, and medical devices. On the other hand, India has been eager to preserve certain protections for its domestic industries while improving access to the U.S. market for its exports, especially in the textile and information technology sectors.
Past attempts to resolve trade tensions between the two countries have been impeded by disagreements over tariffs, intellectual property rights, data privacy, and digital commerce regulations. However, recent high-level interactions and positive rhetoric from both sides suggest that the current environment is more conducive to cooperation than in previous years.
While no specific details about the trade agreement under discussion have been released, the tone of the conversations from top U.S. officials indicates that a framework may already be in place. The administration’s coordinated messaging—from the president, treasury secretary, and vice president—reflects a united front and a sense of urgency in finalizing the deal.
The global trade community will be watching closely to see if the U.S. and India can overcome their longstanding trade differences and reach a mutually beneficial agreement. A successful deal could mark a significant turning point in U.S.-India relations and set the stage for greater economic integration between the world’s largest democracy and its largest economy.
Until then, both countries appear committed to keeping up the momentum. As President Trump stated confidently, “I think we’ll have a deal with India,” summarizing the administration’s outlook on what could be one of the more consequential trade developments of his presidency.