Close to Historic Trade Deal with India, Says Donald Trump

Close to Trade Deal with India, Says US President Donald Trump

Date: July 8, 2025
Location: Washington, D.C.

In a significant statement on global trade relations, former U.S. President Donald Trump, who is once again in the political spotlight ahead of the 2024 U.S. presidential election, declared that the United States is “very close to finalizing a major trade deal with India.” Speaking at a rally in Florida, Trump emphasized the importance of stronger economic ties between the world’s two largest democracies.

“India Has Been Tough But Fair,” Says Trump

“India has been tough in negotiations, but they’ve been fair too. We are very close to wrapping up one of the most comprehensive trade agreements between our two countries,” Trump told an energized crowd of supporters.

He did not elaborate on specific terms of the deal but hinted that it would cover tariffs, technology exchange, defense cooperation, and access to U.S. agricultural products in Indian markets. “We’re getting better terms for our workers, our farmers, and our companies,” he added.

Background: US-India Trade Relations

Under Trump’s previous administration (2017–2021), the U.S. and India had made significant strides toward a strategic trade partnership. However, a full bilateral trade agreement was never concluded, due to disagreements on data localization, tariffs on dairy and medical devices, and India’s digital tax on foreign tech firms.

The Biden administration had taken a more measured approach, focusing on the Indo-Pacific alliance and the QUAD grouping. Trump’s latest remarks signal a renewed push for aggressive bilateral trade diplomacy—especially if he secures the Republican nomination again.

India’s Position on Trade Deal

The Indian government, while not releasing an official statement in response, has maintained that any agreement must protect domestic interests, particularly in agriculture, e-commerce, and data sovereignty. According to sources within the Ministry of Commerce and Industry, India has been cautiously optimistic about resuming talks with the U.S., especially with the growing emphasis on “friend-shoring” and supply chain resilience.

In the past year, India has also signed or initiated trade talks with the UK, the EU, and Australia, aiming to bolster its export-led growth.

Geopolitical Angle

Analysts suggest that Trump’s focus on India is also influenced by broader geopolitical factors—chiefly, countering China’s economic influence and strengthening the Indo-Pacific alliance. A strategic U.S.-India trade pact could complement existing defense partnerships and tech collaboration under frameworks like iCET (Initiative on Critical and Emerging Technologies).

Dr. Rachel Adams, a senior fellow at the Atlantic Council, noted:

“A trade deal with India could be Trump’s big win in Asia, both economically and strategically. The U.S. sees India as a crucial counterbalance to China—not just militarily but economically too.”

Political Implications

Trump’s renewed push for a trade deal may also be aimed at securing support from Indian-American voters, a key demographic in swing states like Texas, Georgia, and Michigan. In the 2020 election, he received a notable share of Indian-American votes, aided by his public friendship with Indian PM Narendra Modi.

The timing of this announcement, just months ahead of the Republican National Convention, suggests Trump is doubling down on his “America First, but India is a friend” narrative.