In a sharp turn in global trade diplomacy, former U.S. President Donald Trump has said that India is working along the same lines as Indonesia in trade discussions with the United States. His comments follow the announcement of a new trade deal between the U.S. and Indonesia that imposes import tariffs and opens up access for American exports.
Speaking at a media briefing on Tuesday, Trump remarked, “We’ve just completed a deal with Indonesia. India is working basically along the same line. We’re going to have access into India.”
The U.S.–Indonesia deal, finalized earlier this week, includes a 19% tariff on Indonesian goods entering the U.S., while U.S. products will face little to no import barriers in Indonesia. The pact reportedly covers major sectors such as aviation, agriculture, liquified natural gas, and automotive exports.
While full details of the India talks remain confidential, sources close to the U.S. trade office suggest that negotiations with India are nearing conclusion. The talks are reportedly focused on lowering tariffs for American farm products, tech equipment, and clean energy machinery, while the U.S. may ease certain import restrictions on Indian pharmaceutical and textile products.
Senior U.S. officials, including Treasury Secretary Scott Bessent, have expressed optimism. “We are very close with India. It’s progressing in parallel with our deals with South Korea and Japan,” he said during the briefing.
The Trump team has reportedly set an August 1 deadline to finalize the deal. If talks collapse, the U.S. could implement retaliatory tariffs up to 26% on Indian imports, a move that may hurt India’s export competitiveness in the U.S. market.
For New Delhi, the proposed trade pact is seen as both a challenge and an opportunity. While India has historically protected its domestic industries—particularly agriculture and MSMEs—it is also keen to deepen strategic and commercial ties with the United States amid a rapidly shifting global order.
Indian officials are said to be pushing for a balanced framework, one that avoids heavy concessions while ensuring continued access to the American market. Discussions have also touched on issues such as digital taxation, data localization, and IP protections, which previously stalled past attempts at a “mini deal.”
A final agreement, if struck, could give a major boost to India–U.S. bilateral trade, which stood at nearly $190 billion in 2024. Both countries have expressed a vision to double this figure in the coming years, particularly by strengthening supply chains, semiconductors, and defense manufacturing collaborations.
Experts believe that India is unlikely to replicate the Indonesia model word-for-word. “While the structural goals may be similar, India’s domestic constraints and electoral sensitivities make it harder to offer the same level of tariff-free access,” said Dr. S.K. Menon, a former trade negotiator.
Still, even a limited agreement could mark a significant diplomatic win for both sides. For Trump, it reinforces his election narrative on fairer trade. For India, it could open up new doors for investment and export diversification at a time of global uncertainty.
As of now, no official statement has been released by India’s Ministry of Commerce. However, officials in New Delhi have confirmed that multiple rounds of high-level talks have taken place in Washington this month, involving senior trade and foreign policy teams.
With just over two weeks to the self-imposed deadline, the coming days will be critical. Whether the final version mirrors the Indonesia deal or emerges as a hybrid remains to be seen—but Trump’s direct reference to India suggests that a major breakthrough may be just around the corner.
