Trump Claims India Took Advantage of US Trade for Years, Signals New Deal Soon
- By Thetripurapost Desk, New Delhi
- Jun 05, 2026
- 96
US President Donald Trump has expressed confidence that a major trade agreement between India and the United States could be (India-US Trade Facts and Statistics) finalized in the near future, citing his close relationship with Prime Minister Narendra Modi and growing economic cooperation between the two countries.
Speaking about India-US trade relations, Trump claimed that India had maintained high tariff barriers on American goods for years. However, he stated that the situation is changing and that the United States is now benefiting more significantly from trade with India.
“I have a very good relationship with Prime Minister Narendra Modi. We understand each other well, and that helps in moving important issues forward,” Trump said while discussing ongoing trade negotiations.
India-US Trade Talks Gain Momentum After High-Level Meetings
Trump's remarks come shortly after a US trade delegation held extensive discussions with senior Indian government officials in New Delhi. The negotiations focused on resolving key trade disputes and finalizing an interim trade arrangement that could serve as the foundation for a broader India-US trade deal.
According to India's Commerce Ministry (India Ministry of Commerce and Industry) the talks have been constructive and both sides remain committed to achieving a mutually beneficial agreement. Officials indicated that negotiations are progressing positively despite several unresolved issues.
New US Tariff Proposal Could Impact Indian Exports
While trade talks continue, a fresh challenge has emerged in the form of a proposed US tariff policy targeting countries accused of inadequate action against forced labor practices.
India has been included among the countries that may face additional import duties under the proposal. If implemented, Indian exports to the United States could be subjected to an extra 12.5 percent tariff.
Trade experts warn that higher tariffs could increase the price of Indian products in the American market, affecting exporters in several sectors.
The Indian government, however, emphasized that the proposal remains under review and no final decision has been announced. The United States is expected to seek public feedback and industry consultations before implementing any new measures.
Accelerate India-US Trade Agreement
India-US Interim Trade Pact Still Awaiting Final Approval
In February 2026, India and the United States reportedly reached a preliminary understanding on an interim trade framework designed to address long-pending trade concerns.
However, uncertainty emerged after the US Supreme Court ruled that certain tariffs introduced during the Trump administration were unlawful. The ruling created confusion over which tariff measures would remain effective, complicating negotiations between the two countries.
As a result, the interim trade agreement has yet to receive final approval.
Agriculture and Dairy Sectors Remain Major Sticking Points
Several sensitive sectors continue to pose challenges in the India-US trade negotiations.
India is seeking reduced US tariffs on textiles, pharmaceuticals, engineering goods, agricultural products, and gems and jewellery exports.
Meanwhile, Washington wants broader access for American agricultural commodities, dairy products, medical devices, alcoholic beverages, and digital service providers in the Indian market.
The agriculture sector remains the biggest obstacle. The United States is pushing for easier market access for products such as corn, soybeans, almonds, apples, and other farm goods. India remains cautious, fearing that unrestricted imports could affect the livelihoods of millions of farmers.
The dairy sector is another major area of disagreement. India has expressed reservations about opening its market to certain US dairy products, making the issue one of the most difficult aspects of the ongoing trade talks.
India-US Trade Deal: What Lies Ahead?
Despite unresolved disputes, both countries continue to engage in intensive negotiations aimed at strengthening bilateral trade and investment ties. Analysts believe that a successful India-US trade agreement could significantly boost economic cooperation, increase market access, and further deepen the strategic partnership between the world's largest and oldest democracies.
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