United States President Donald Trump has signaled the possibility of reaching a trade deal with India in the near future. Speaking about upcoming trade agreements, he remarked that “another deal is coming” regarding India, but added a cautious “maybe,” as per a recent report.
“We have some pretty good deals to announce,” Trump stated, also mentioning that with Japan, the US will likely “live by the letter” of their agreements.
Ongoing Negotiations with India’s Commerce Ministry
These remarks come as a team from India’s Commerce Ministry is currently in the US for another round of trade discussions. Commerce Minister Piyush Goyal emphasized earlier this month that India will not engage in trade agreements based on arbitrary deadlines, insisting any proposed deal with the US must be fully finalized and serve India’s national interests, according to a PTI report.
Trump had previously indicated that the negotiations between the US and India are progressing smoothly.
The Indonesian Context
Regarding Indonesia, Trump stated that the country is granting the US access like never before, emphasizing, “We have full access into Indonesia.” He praised Indonesian President Prabowo Subianto, saying they “made a terrific deal” that opened the entire country to trade. Trump believes a similar opportunity could arise with India, saying he anticipates “something similar” happening soon.
Should India and the US fail to finalize their trade deal, a 16% reciprocal tariff will be imposed on Indian goods beginning August 1, in addition to the existing 10% baseline tariff. However, negotiations may allow for an extension of this deadline.
Tariff Details for Indonesia
Trump recently announced that Indonesian goods would face a 19% tariff when exported to the US, while US exports to Indonesia would not incur tariffs—creating an asymmetric trade arrangement favoring the United States. Initially, Indonesia was warned of a potential 32% American tariff before the agreement was amended to reduce this figure to 19%.
As part of the agreement with Indonesia, Trump revealed commitments for substantial purchases: $15 billion in US energy, $4.5 billion in American agricultural products, and 50 Boeing jets, many of which will be the 777 model. He shared this information on his social media platform, Truth Social.
