US, India 'close to reaching trade deal'

WASHINGTON — The United States could reach a trade deal with India that would help US companies compete in the South Asian country and leave it facing far lower tariffs, President Donald Trump said on Tuesday, while casting doubt on a possible deal with Japan.

Trump told reporters aboard Air Force One that he believed India was ready to lower barriers for US companies, which could pave the way for an agreement staving off the 26 percent rate he announced on April 2, before pausing it until July 9.

"Right now, India doesn't accept anybody in. I think India is going to do that, if they do that, we're going to have a deal for less, much less tariffs," he said.

Earlier, Treasury Secretary Scott Bessent told Fox News that the US and India are nearing a deal that would lower tariffs on US imports from the South Asian country and help India avoid levies from rising sharply next week.

"We are very close with India," Bessent told Fox News in response to a question about progress on trade negotiations.

Indian officials extended a visit to Washington last week through Monday to try and reach an agreement on a trade deal with the US administration and address lingering concerns on both sides, Indian government sources told Reuters.

A White House official familiar with the talks said the administration plans to prioritize securing trade deals with countries, including India, ahead of Japan in the days leading up to the July 9 deadline.

India is one of more than a dozen countries actively negotiating with the Trump administration to try to avoid a steep spike in tariff rates on July 9, when a 90-day tariff pause ends. India could see its new "reciprocal" tariff rate rise to 27 percent from the current 10 percent.

Disagreements remain

The US-India talks have hit roadblocks over disagreements on import duties for auto components, steel, and farm goods, ahead of Trump's deadline to impose reciprocal tariffs.

"We are in the middle — hopefully more than the middle — of a very intricate trade negotiation," Indian Foreign Minister Subrahmanyam Jaishankar said at an event in New York on Monday.

He said there "will have to be give and take" and the two sides will have to find middle ground.

Bessent told Fox News that different countries have different agendas for trade deals, including Japan, which Trump complained about on Monday and again on Tuesday.

Trump said he was not thinking of extending the July 9 deadline and would simply send letters notifying countries of the tariff rate they would face.

"We've dealt with Japan. I'm not sure (if) we're going to make a deal. I doubt it," Trump told reporters aboard Air Force One as he returned to Washington from a trip to Florida.

Trump suggested he could impose a tariff of 30 percent or 35 percent on imports from Japan — well above the 24 percent tariff rate he announced on April 2 and then paused until July 9.

He said Japan was refusing to accept US-grown rice, a demand made by Washington that he described as "an easy one", while selling millions of cars in the United States.

"So what I'm going to do, is I'll write them a letter saying we thank you very much, and we know you can't do the kind of things that we need, and therefore you pay a 30 percent, 35 percent or whatever the numbers that we determine," he said.

Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminum.

Ryosei Akazawa, Tokyo's trade envoy, told Japanese reporters in Washington last month that some progress had been made during a fifth round of talks with the United States. However, he added, "We've not been able to find a point of agreement yet."

Agencies via Xinhua