Daijiworld Media Network - Washington
Washington, Jul 16: US President Donald Trump has said that India is working towards a trade agreement similar to the recent deal the United States struck with Indonesia, which aims to give Washington greater access to key foreign markets.
Speaking to reporters in Washington on Tuesday, Trump highlighted that under the Indonesia deal, the US would impose a 19 per cent tariff on imports but face no tariffs on its exports to Jakarta. He claimed a similar framework is being considered with India. “India basically is working along that same line. We’re going to have access into India,” Trump said.
Negotiators from both countries are racing to finalize a deal before Trump’s self-imposed August 1 deadline, after which he has warned of arbitrary tariffs—potentially as high as 35 per cent—on nations that do not comply.
While Trump did not confirm whether the India-US agreement would mirror the Indonesia pact in detail, trade experts believe such terms may be a tough bargain for India, especially if it includes allowing tariff-free US exports while imposing duties on Indian goods.
In a separate remark, Trump linked ongoing global conflicts to trade and energy sanctions. He warned of a 100 per cent punitive tariff on countries, including India, if they continue to import Russian energy products beyond September 2—unless Russia agrees to a peace deal in Ukraine.
“I don’t think 50 days is very long, and it could be sooner than that,” Trump said, expressing hope that Russian President Vladimir Putin could reach a ceasefire agreement soon.
The tariff threats are part of Trump's broader strategy to pressure nations into cutting off economic ties with Moscow and compelling Russia to end its invasion of Ukraine. The move could put nations like India in a difficult spot, given their energy needs.
Meanwhile, Republican Senate leader John Thune said he would pause the introduction of a bill proposing a steep 500 per cent tariff on Russian energy importers, after Trump hinted that executive action would be sufficient.
Trump defended his tough stance on trade, stating, “You have to understand, we had no access into any of these countries. And now we’re getting access because of what we’re doing with the tariffs.” He noted that Indonesia has crucial resources like high-quality copper and rare earth minerals that the US requires.
With the clock ticking toward the August 1 deadline, the spotlight remains on the India-US negotiations as both sides weigh economic benefits against political and diplomatic consequences.