Anticipation of an early trade deal with US rose higher on Wednesday when US President Donald Trump, after months of dillydallying, said that his administration was “pretty close” to a pact with India, though asserting that it will be different from other trade agreements.“They want to make a deal. We’re going to make a deal. Pretty close, yeah… It’s going to be a much different kind of deal than we’ve done,” Trump told reporters at Oval Office.His comments came hours after US secretary of state Marco Rubio said that the two countries are “as close as you can be without having an executed agreement”. Last week, commerce & industry minister Piyush Goyal had said that the deal had almost been finalised and what remained was the legal vetting, while stating that it will be implemented once there was clarity on India’s competitive advantage.However, officials in Delhi were parsing Trump’s statement about the likely deal being different, and keeping their fingers crossed given the many twists and turns during the negotiations.
Deal may skip sectors where India, US unable to reach understanding
There has been speculation in certain quarters that the much-awaited deal may not be comprehensive, covering all sectors, and the two sides may like to leave aside the issues which have been particularly nettlesome to have an understanding on those for which they have been able to hammer out agreements.Last year, Indian oil companies entered into agreements to import gas from US, and there are demands from American companies on specific technological products, which govt is willing to accept, provided these help secure easier access for locally produced textiles, footwear and engineering goods.
Share your thoughts in the comments
Be respectful · TOI community guidelines
A comparative advantage for India — a reference to lower additional tariffs on exports from the country — will depend on how the Trump administration uses the powers under the Trade Act to impose duties on imports from across the world.Currently, Indian exports to US face 10% additional tariffs, under Section 301, for govt’s alleged failure to check the import of goods made using forced labour, with the administration arguing that the “unfair” advantage acts as a barrier for US exports. Additional tariffs of 10-12.5% have been imposed on over 50 countries.The outcome of a second probe under the same provision related to structural overcapacity is awaited. Officials here indicated that clarity was required on some of the aspects and the assessment is that things will be clearer after the US mid-term elections, slated for the first week of Nov, for which Republicans have made the Trump administration’s claim to have secured higher protection for American business and labour one of their key planks.In Aug 2025, Donald Trump imposed a 50% tariff on Indian goods, including a secondary tariff of 25% for Russian oil imports, which was withdrawn.
