Former U.S. President Donald Trump has signaled a potential breakthrough in U.S.-India trade relations, stating that there is “going to be a deal with much less tariffs” between the two major democracies. The statement, made during a campaign stop in Ohio, is being viewed as a fresh attempt by Trump to reaffirm strong economic ties with India amid ongoing trade negotiations.
Speaking to reporters after the event, Trump said, “India has been a great partner, and we are working on a deal that will be fair for both sides. There will be a deal with much less tariffs — something we were close to finalizing during my administration. We’re bringing that back to the table.”
Reviving Old Talks with a New Focus
During Trump’s first term, trade negotiations between the U.S. and India gained momentum but eventually stalled over issues like digital trade barriers, agricultural exports, and high tariffs on U.S. goods. India was also removed from the U.S. Generalized System of Preferences (GSP) program in 2019, impacting billions of dollars in duty-free exports.
Trump’s renewed push for lower tariffs suggests he may be seeking to restore and expand preferential access for American businesses if re-elected in November 2025. “It’s not just about business — it’s about respect and trust between two powerful nations,” Trump said. “India wants access to our market, and we want the same. It’s time to make it reciprocal.”
A Strategic Pivot in Indo-Pacific Relations
Trump’s remarks come at a time when geopolitical tensions in the Indo-Pacific region have intensified, with both the U.S. and India seeking to strengthen economic and defense cooperation to counterbalance China’s growing influence. The promise of a new trade deal aligns with strategic interests on both sides, especially as India emerges as a major global manufacturing and digital economy hub.
Sources close to the Trump campaign suggest that discussions have resumed informally between former trade representatives and Indian officials, focusing on key sectors such as technology, defense, agriculture, and e-commerce.
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Reaction from Indian Officials
In New Delhi, the Ministry of External Affairs declined to comment officially on Trump’s remarks, but a senior trade official noted that “India remains committed to building a balanced trade relationship with the U.S., and any efforts to reduce tariffs will be welcome.”
Indian businesses have long sought tariff reductions on exports like textiles, pharmaceuticals, and IT services, while U.S. exporters have been pushing for greater access in agriculture, dairy, and medical equipment markets.
Election Year Dynamics
Trump’s statements also carry weight in the context of the upcoming U.S. presidential election, where foreign policy and trade deals are once again central talking points. Indian-American voters — a growing and influential demographic — could see this as a positive signal of Trump’s commitment to stronger U.S.-India ties.
During his previous term, Trump visited India in 2020 and shared a close rapport with Prime Minister Narendra Modi, often referring to him as a “great friend.” The “Namaste Trump” rally in Ahmedabad and joint defense projects deepened that connection — something his campaign appears eager to revive.
Looking Ahead
Whether Trump’s words translate into formal negotiations remains to be seen. However, his emphasis on “much less tariffs” and fairness sets the tone for a potential new chapter in U.S.-India trade ties. As global trade undergoes transformation amid shifting alliances and economic rebalancing, the possibility of a more open U.S.-India trade deal could serve as a stabilizing force in a rapidly changing world economy.
For now, business leaders and policymakers in both nations will be watching closely as the dialogue progresses — and as November’s U.S. election draws nearer.
