• President Donald Trump indicated that a trade agreement with India is nearly finalized, focusing on tariff reductions and market access.
  • The deal could ease bilateral trade tensions and may involve India adjusting its energy purchases from Russia.
  • Analysts expect sector-specific impacts, with potential benefits for agriculture, manufacturing, and energy trade.

Near-Completion Trade Talks

President Donald Trump said Thursday that the United States is “very close” to finalizing a comprehensive trade deal with India, signaling a potential thaw in relations that have been strained by tit-for-tat tariffs. Speaking to reporters aboard Air Force One, Trump stated that negotiations over the past several weeks have narrowed differences on key issues, including tariff reductions and Indian commitments to purchase more U.S. energy products.

“We’re very close on a trade deal with India,” Trump said. “It’s going to be a great deal for both countries.” The announcement comes after months of back-and-forth, with both sides seeking to address trade imbalances. India has imposed high tariffs on U.S. goods such as almonds and motorcycles, while the U.S. has raised duties on Indian steel and aluminum.

People familiar with the matter said the emerging deal would see India lower tariffs on select American agricultural and manufactured goods. In return, the U.S. would ease restrictions on Indian exports, particularly in the textiles and pharmaceuticals sectors. Additionally, India is expected to increase purchases of U.S. crude oil and liquefied natural gas, a move that could reduce its reliance on Russian energy—a key U.S. priority amid ongoing geopolitical tensions.

Industry groups have cautiously welcomed the progress. “A tariff rollback would be a shot in the arm for American farmers and manufacturers,” said a representative from the U.S. Chamber of Commerce. However, some trade experts warn that the devil is in the details. “Until we see the fine print on tariff schedules and enforcement mechanisms, it’s hard to gauge the true impact,” said an analyst at a Washington-based trade think tank.

Markets responded positively, with the Indian rupee strengthening against the dollar and U.S. stock futures edging up. Shares of export-oriented companies in both countries saw modest gains. The deal, if finalized, would mark the most significant détente in U.S.-India trade relations since the early 2000s.

Efforts to reach the Indian commerce ministry for comment were not immediately successful.

Correction: An earlier version of this article misstated the timing of Trump's remarks. They were made Thursday, not Friday.