The United States is hopeful of finalizing a trade agreement with India soon, as both nations work to ease tensions over potential tariffs initiated under former President Donald Trump’s administration.
Speaking at the US-India Strategic Partnership Forum, US Commerce Secretary Howard Lutnick expressed confidence that the two countries are nearing a resolution. “I’m very optimistic,” he said. “We should expect a trade deal between the US and India in the near future.”
The optimism comes ahead of a looming July 9 deadline, initially set by Trump, for countries to act to prevent broad-based tariff penalties. The deadline was part of broader efforts to rebalance trade terms seen as unfavorable to the US.
While Lutnick expressed admiration for India, calling himself a “great fan,” he acknowledged that longstanding tariff issues have remained a sticking point. “We need to bring tariffs down to levels that are fair and mutually beneficial. That’s key to becoming stronger trade partners,” he stated.
He also touched on other points of tension, notably India’s defense purchases from Russia. “There have been policy moves by India that have not sat well with the United States, particularly their military ties with Russia,” Lutnick noted. However, he added that India is now taking steps to respond to these concerns.
Despite the challenges, Lutnick emphasized that progress is being made behind the scenes and both governments are actively working through the issues.
As trade discussions continue, the outcome of US-India negotiations could play a crucial role in shaping future economic cooperation between the two democracies.
