Trump Says India Trade Deal ‘On Track’

US President Donald Trump on Friday said that the proposed trade deal with India is “on track” and described bilateral relations as “fantastic.”

Speaking amid ongoing discussions between the two countries, Trump said India would continue to pay 18% tariffs under the interim framework that has been agreed upon but not yet formally signed.

Interim Deal Yet to Be Signed

Indian officials are closely monitoring developments, particularly in light of the recent US Supreme Court ruling on tariffs. Since the interim agreement has not yet been signed, some officials believe there may be room for further discussions depending on Washington’s next steps.

“India has not signed the agreement yet, so there may be some scope for dialogue. But we will wait and see how the US government responds to the ruling,” a senior official said.

A delegation led by India’s chief negotiator Darpan Jain is currently headed to Washington to finalise the legal text of the agreement with US Trade Representative Jamieson Greer. The USTR is expected to visit New Delhi next month to sign the interim deal.

Tariff Structure Under Framework

Under the interim understanding, India has agreed to reduce tariffs on a majority of items. In return, the US reduced its reciprocal tariffs on Indian goods to 18%.

However, sector-specific tariffs remain higher. Duties on iron and steel, copper, aluminium, automobiles and auto parts are set at 50%.

Commerce and Industry Minister Piyush Goyal earlier said that the agreement is expected to be operationalised in April.

Global Trade Context

Indonesia recently became the latest country to sign a trade agreement with the US, locking reciprocal tariffs at 19%. Other countries including Malaysia, Argentina, Cambodia, Guatemala, El Salvador, Bangladesh and Taiwan have also entered similar arrangements.

Some American experts have suggested that the validity of such agreements could face scrutiny if Congress takes a more active role in trade oversight.

Alternative US Measures

Trump has indicated that he may rely on alternative legal provisions to maintain tariff measures. He has invoked Section 122 of the Trade Act of 1974, which allows temporary tariffs of up to 15% for balance-of-payments reasons, and imposed a 10% additional tariff on all countries.

He has also said that investigations under Section 301 into alleged unfair trade practices could lead to further tariff action, though such probes may take several months.

Why It Matters for India

The United States remains India’s largest export destination, accounting for nearly one-fifth of total shipments.

With negotiations entering the final stage, both governments appear cautious but optimistic about finalising the interim deal. Officials in New Delhi are assessing how recent legal and policy developments in Washington could influence the final terms.

For now, Trump’s remarks signal continuity in trade engagement between the two countries, even as broader tariff debates continue in the US.