NEW DELHI: Former US President Donald Trump has claimed that India is working on a trade agreement with the United States modeled along the same lines as the recently announced US-Indonesia deal, which significantly favors American exports. Trump has imposed an August 1 deadline for finalizing such deals, warning of steep tariffs on countries that do not comply.
Speaking to reporters in Washington on Tuesday, Trump stated, “India basically is working along that same line. We’re going to have access into India.” He added that the arrangement would resemble the pact with Jakarta, under which the US imposes a 19% tariff on imports from Indonesia while allowing duty-free exports to the country.
Though the details of the proposed US-India agreement remain unclear, the Indonesian deal heavily tilts in favor of American interests. If the Indian deal mirrors this framework, it could entail a 19% tariff on Indian goods entering the US, while India would be required to remove tariffs on American imports — a scenario that could face resistance in New Delhi.
Trump has set August 1 as a deadline for trade agreements, issuing notices to several countries, including members of the European Union and India. If negotiations fail, the US could unilaterally impose punitive tariffs of up to 35% on imports from these nations.
It is still uncertain whether India will accept the terms of a deal so heavily skewed in the US’s favor. Analysts believe that India is unlikely to agree to a blanket removal of tariffs without reciprocal concessions, especially given its current push for self-reliance and domestic manufacturing through the ‘Make in India’ initiative.
Trump’s comments come as part of a broader attempt to exert pressure on global trading partners and reduce America’s trade deficits. “You have to understand, we had no access into any of these countries. Our people couldn’t go in. And now we’re getting access because of what we’re doing with the tariffs,” he said, justifying his protectionist stance.
In a related development, Trump also warned that countries continuing to import energy from Russia could face a 100% secondary tariff, unless Russian President Vladimir Putin agrees to a peace deal in Ukraine before the 50-day deadline he has set — which ends on September 2.
“This could be done sooner than that,” Trump said, adding that a peace deal would help countries like India avoid becoming collateral damage due to their continued energy trade with Russia.
India, which has significantly increased its purchases of discounted Russian oil since the start of the Ukraine war, could be hit hard by such a tariff, although it remains unclear how the policy would be enforced.
Meanwhile, Republican Senate leader John Thune has delayed the introduction of a proposed bill seeking a 500% tariff on Russian energy importers. Trump has expressed skepticism over such legislation, asserting that he could unilaterally impose sanctions if needed.
The former president, who is campaigning for a return to office, appears to be using trade and energy policy as levers to reshape US global influence — and compel allies and partners like India to align with his vision.
As negotiations intensify, all eyes are now on how India navigates this high-stakes geopolitical and economic challenge, balancing its global partnerships while safeguarding its national interests.
