The United States is nearing a breakthrough trade agreement with India that could lower tariffs and improve market access for American businesses, President Donald Trump said on Tuesday. However, he cast serious doubt over striking a similar deal with Japan, accusing Tokyo of blocking American agricultural exports while benefiting from unrestricted access to U.S. markets.
Speaking to reporters aboard Air Force One, Trump signaled optimism over trade negotiations with India, suggesting that New Delhi is prepared to ease trade barriers and reduce import duties for U.S. companies.
&ldquo;We&rsquo;re close to a deal with India &mdash; it&rsquo;ll be a different kind of deal, one where we can finally compete,&rdquo; Trump said. &ldquo;India has kept its doors closed for too long, but if they open up, we&rsquo;ll have a deal with significantly lower tariffs.&rdquo;
The negotiations come as India faces the looming threat of higher tariffs from Washington. On April 2, Trump announced a new reciprocal tariff framework, which included a proposed 26% duty on Indian imports. That increase was temporarily suspended for 90 days but is set to take effect on July 9 if a resolution is not reached.
U.S. Treasury Secretary Scott Bessent reinforced Trump&rsquo;s remarks, telling American media that both sides are on the verge of an agreement that would shield India from sharp tariff hikes while giving American exporters better access to the Indian market.
&ldquo;We&rsquo;re very close with India,&rdquo; Bessent said, expressing confidence that a deal could be finalized in the coming days.
Indian officials have also acknowledged the progress but caution that negotiations remain delicate. Speaking in New York on Monday, External Affairs Minister S. Jaishankar described the talks as complex but constructive.
&ldquo;We are hopefully beyond the halfway point in a very detailed negotiation,&rdquo; Jaishankar said. &ldquo;My hope is to conclude it successfully, but these talks require compromise from both sides.&rdquo;
While optimism surrounds the India talks, Trump struck a starkly different tone when addressing trade relations with Japan. He accused Japan of refusing to import U.S.-grown rice while enjoying robust access to the American automobile market.
&ldquo;We&rsquo;ve been negotiating with Japan, but honestly, I doubt we&rsquo;ll get a deal,&rdquo; Trump stated. &ldquo;They won&rsquo;t even accept our rice &mdash; something so simple &mdash; while selling millions of cars here.&rdquo;
Trump warned that absent progress, the U.S. could impose even steeper tariffs on Japanese imports, hinting at rates between 30% and 35%, significantly higher than the 24% initially proposed and currently paused until July 9.
The mixed signals from Trump highlight the administration&rsquo;s broader strategy of using tariffs as leverage to extract concessions from trade partners. With the July 9 deadline fast approaching, all eyes are on Washington as India scrambles to avert a tariff hike, while Japan faces the prospect of escalating trade tensions.

Trump optimistic as India may ease trade barriers for US firms (File Photo)

We’re close to an India deal that will lower tariffs and open their market, Trump said

US Set for India Trade Deal, Japan in Doubt: Trump

We’re close to an India deal that will lower tariffs and open their market, Trump said

July 2, 2025 | 14:07 IST