Tariff talks with India 'going great', might have a deal soon, says Trump

Trump's remarks came ahead of a Michigan rally. Speaking to reporters outside the White House, he also informed them of his plans to visit Africa and hold talks with Australian officials

On Tuesday (local time), US President Donald Trump claimed that talks with India on trade tariffs were 'coming along great' and expressed optimism about reaching a deal soon.

 

Trump made these remarks ahead of a Michigan rally. Speaking to reporters outside the White House, he also informed them of his plans to visit Africa and hold talks with Australian officials.

 

On Tuesday (IST), Reuters, citing Indian government officials, reported that the Centre is all set to include a 'sweetener' in trade talks with the US that would "future-proof" a deal. The government will ensure that no other trade partner receives better terms. This comes at a time when the Indian government is trying to ensure a swift agreement with the Trump administration.

 

The report further stated that the "forward most-favoured-nation" clause, which has rarely been granted by the Centre in previous trade talks, would automatically apply to the US, ensuring that the latter automatically gets any better tariff terms that the Centre grants to the other countries. 

 

India-US trade talks

Earlier yesterday, US Treasury Secretary Scott Bessent noted that trade talks with India were moving well. He also hinted at the fact that India could become one of the first countries to sign a deal with the US. The sentiment was echoed by Howard Lutnick, the commerce secretary. In an interview with CNBC, Lutnick, without giving many details, said that while one of the trade deals is done, the US was still waiting for approval from an unnamed country's prime minister and its parliament. 

 

Statements issued by the Trump administration also indicate that the two sides have already agreed on a plan for their trade discussions.

 

The Trump administration has claimed that it wants to sign deals with India and other countries before the 90-day pause ends.

 

Trump's tariffs

 

Donald Trump implemented the "reciprocal trade tariffs" on April 2 and announced a discounted tariff rate on several countries, including India. A 26 per cent tariff was imposed on India, in comparison to the 52 per cent imposed by India on US products. 

 

However, on April 9, he announced a 90-day pause on all reciprocal tariffs imposed, following a turmoil in the markets, but the 10 per cent baseline tariffs imposed were left intact. The pause was applied to all the countries except China.

 

(with agency inputs)