US President Donald Trump stated that India is negotiating a trade deal similar to the one he announced with Indonesia, which will give the US greater access to the Indian market.
According to the agreement with Jakarta, there will be a 19% tariff on imports into the US but none on exports from the US to Indonesia, he told reporters in Washington.
"India basically is working along that same line" , he commented. "We are going to have access to India." Negotiators from India and the United States are working to reach a deal before Trump's August 1 deadline for making deals or face arbitrary tariffs.
Key Highlights
- Trump confirms India trade negotiations mirror Indonesia deal—U.S. to gain full market access before August 1.
- Indonesia‑U.S. pact features 19% import tariff on Indonesia, while U.S. exports enter duty‑free—model for India.
While threatening tariffs of up to 35% if countries and the European Union do not reach an agreement by that date, he has also issued a similar warning to India. It is unclear whether he meant an exact replica of the Indonesia deal, which would be difficult to sell in India, or other levels of tariffs and other concessions made by India.
If the US-India bilateral trade agreement under negotiation mirrors the Indonesian one, India's exports would be subject to a 19% tariff while US imports would be duty-free.
Trump also stated that Russia's President Vladimir Putin could reach a peace agreement with Ukraine before the 50-day deadline, exempting India and others from paying the 100% punitive tariff he has threatened.
When asked about the September 2 deadline, he said, "I don't think 50 days is very long, and it could be sooner than that". Trump announced on Tuesday that he would take strong action against Russia because it has refused to agree to a cease-fire in its war against Ukraine.
Also Read: Govt Official Confirms India-US Trade Pact Moving Forward as Outlined
One of these is the imposition of a 100 percent secondary tariff on countries importing Russian energy, making India and others collateral victims of the actions taken against Moscow. The goal of punitive tariffs on Russian energy importers is to force them to halt purchases and cut off funds to Moscow, as well as to put pressure on Russia to reach an agreement.
Meanwhile, John Thune, the Republican Party's Senate leader, stated that he would not introduce a bill imposing a 500 percent tariff on Russian energy importers. Trump had questioned the need for such legislation when he could impose sanctions unilaterally.
Regarding the deal with Indonesia and a potential deal with India, Trump stated, "You must understand that we had no access into any of these countries. Our people were unable to enter. And now we have access as a result of our tariff actions."
He claimed that Indonesia produces high-quality copper and rare earth minerals that the United States requires.
