Trump hints at ‘very big’ trade deal with India after China pact

However, he also made it clear that not all countries would be extended deals.

After signing a trade deal with China, US President Donald Trump on June 26 hinted that a major agreement with India could be in the works.

Speaking at a White House event focused on promoting a government spending bill, Trump said, “We just signed [a trade deal] with China. We're not going to make deals with everybody... But we're having some great deals. We have one coming up, maybe with India — a very big one.”

#WATCH | "...We just signed (trade deal) with China. We're not going to make deals with everybody... But we're having some great deals. We have one coming up, maybe with India, a very big one. We're going to open up India. In the China deal, we're starting to open up China.… pic.twitter.com/fJwmz1wK44

— ANI (@ANI) June 26, 2025

Without revealing specifics, the former US president added, “We're going to open up India. In the China deal, we're starting to open up China. Things that never really could have happened.”

Trump’s remarks signal renewed interest in deepening economic ties with India, the world’s fifth-largest economy, especially as Washington continues to reposition global trade partnerships. However, he also made it clear that not all countries would be extended deals. “Some we are just going to send a letter, say thank you very much. You are to pay 25, 35, 45 percent,” he said, referring to tariffs.

A deal on the horizon?

Earlier this month, US Secretary of Commerce Howard Lutnick expressed optimism about a US-India trade agreement. Speaking at the US-India Strategic Partnership Forum, Lutnick said the two countries had found "common ground" and that a deal could be finalised soon.

“I think we’re in a very, very good place,” Lutnick said, adding that he was “very optimistic” about the outcome.

India confirms talks are underway

On the Indian side, Union Commerce and Industry Minister Piyush Goyal recently confirmed that both countries are in discussions for a fair and balanced trade agreement.

“We are negotiating a trade agreement that will benefit both India and the US,” Goyal said during a press interaction on June 10.

The upcoming deal could potentially focus on improving market access, reducing tariffs on specific goods, and enabling smoother flow of investment and services.

Context

In recent years, India and the US have seen friction over tariffs, digital trade rules, and agricultural exports. However, both governments have expressed strong interest in strengthening their economic partnership, especially amid shifting global supply chains and strategic competition with China.

If successful, this proposed agreement could mark a significant milestone in US-India trade relations, especially after the setbacks caused by past tariff disputes.