Trump says India will reduce tariffs to allow American firms compete in local market

By Anjali Sharma

WASHINGTON – US president Donald Trump on Wednesday stated that if India is ready to accept American firms, the two countries will have a deal for much lower tariffs.

Trump confirmed that a trade deal between the US and India, with “much less tariffs” will soon be announced.

“I think we are going to have a deal with India. And that is going to be a different kind of a deal. It is going to be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I think India is going to do that, and if they do that, we are going to have a deal for much less tariffs,” he said, while speaking with reporters on board Air Force One.

He noted that both countries face the looming return of suspended 26 per cent reciprocal tariffs. Imposed on April 2, it was paused for 90 days, and without another agreement, it will likely resume automatically.

Trump made comments hours after US Treasury Secretary Scott Bessent said that the US and India are going to have a deal to lower tariffs on American imports to India and to help India avoid levies imposed by the Trump administration, which will rise sharply next week.

External Affairs Minister S Jaishankar at an event in New York had said, “We are in the middle — hopefully more than the middle of a very intricate trade negotiation.”

A team of Indian officials visited Washington in a push to finalize an agreement before the tariff pause expires on July 9. \

Special Secretary Rajesh Agarwal, is heading the Indian delegation, has extended his stay by another day to try to break the impasse, media reported.

According to media reports India–US tariff issue is a longstanding trade tensions around market access, high import duties, and trade imbalances.