Trump Hints at Major $500 Billion Trade Deal with India: Talks Accelerate Ahead of Tariff Deadline

In a major development, U.S. President Donald Trump has hinted that the United States and India may be on the brink of finalizing a substantial trade deal. Speaking during the “Big Beautiful Bill” event at the White House, Trump said the two nations were moving toward a “very big” agreement that could unlock new economic opportunities.

Key Highlights:

1. A “Very Big One” in the Works

President Trump revealed that negotiations with India are progressing, and a “very big” trade deal could be finalized soon. He suggested that the deal could match the scale of the recently signed U.S.-China trade agreement, stating, “We have one coming up, maybe with India. Very big one. Where we're going to open up India.”

2. High-Level Talks Underway

An Indian delegation, led by Chief Negotiator Rajesh Agarwal, is currently in Washington to bridge the gaps in the proposed agreement. Talks are ongoing across multiple sectors critical to both nations.

3. Focus on Key Sectors

While details remain under wraps, sources say the deal could encompass digital trade, tariffs, pharmaceuticals, electronics, agriculture, and defense supply chains.

4. Agriculture a Sticking Point

Tariff concessions on U.S. agricultural exports—especially genetically modified crops like maize and soybeans—remain a major hurdle, with India showing resistance to opening its markets too broadly.

5. U.S. Commerce Secretary Confident

U.S. Commerce Secretary Howard Lutnick expressed optimism earlier this month, indicating the deal could be reached “in the not-too-distant future.”

6. India Seeks a Balanced Outcome

Indian Commerce Minister Piyush Goyal has emphasized that any agreement must be fair and protect India’s economic and strategic interests.

7. Trump Signals Tougher Trade Policy

Trump made it clear that the U.S. will remain selective about trade partners, warning that countries unwilling to negotiate fairly may face tariffs of “25, 35, or 45 percent.”

8. China Agreement Sets the Stage

The announcement follows a new deal with China, which includes rare earth supply chains. The China pact is seen as a foundation for further strategic economic partnerships.

9. Global Markets Watching India

With the U.S.-China agreement stabilizing markets, investors are now focused on India as the next big trade opportunity.

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India is expected to impose retaliatory tariffs of up to 26% on July 9. While Trump earlier granted a 90-day suspension, both sides are under pressure to reach a resolution before the deadline.

This potential deal marks a crucial moment for both nations, with wide-ranging economic and geopolitical implications. As negotiations continue in Washington, all eyes are on what could become one of the most significant India-U.S. trade agreements in recent years.