Trump Says US Close to Trade Deal with India Amid Tensions
US President Donald Trump has stated that the United States is on the verge of finalizing a trade agreement with India. Speaking to reporters at Joint Base Andrews, Trump said, “India, as you know, we’re very close to making a deal with India.” He emphasized that progress in bilateral trade talks was closely tied to the broader context of regional peace, alluding to ongoing tensions between India and Pakistan. The statement comes amid a critical period of diplomatic maneuvering in South Asia, especially after India’s cross-border operations under Operation Sindoor.
Trump Links Trade Progress to Avoiding War
In a striking remark, Trump claimed credit for preventing what he described as a possible nuclear escalation between India and Pakistan. “We were able to stop potentially a nuclear war through trade as opposed to through bullets,” he said. While this framing fits Trump’s preferred narrative of using economic leverage over military intervention, Indian officials have consistently denied any such link between trade talks and ceasefire efforts. They maintain that the discussions are strictly bilateral and not tied to third-party mediation or conflict resolution.
Pakistan Delegation to Visit US Next Week
Trump also revealed that a Pakistani delegation is expected in Washington in the coming week, likely to continue talks on trade and regional stability. While details of the visit have not been made public, analysts believe the agenda will likely include Pakistan’s economic recovery efforts and its positioning on the India-Pakistan front. The timing of the delegation’s visit aligns with Trump’s trade push in the region, raising questions about whether Washington is attempting to play both sides diplomatically while focusing on economic agreements.
India Seeks Full Tariff Relief Before July Deadline
India, meanwhile, is pushing hard to secure complete exemption from the additional 26% tariffs that were imposed by the US in early April 2025. While the Biden administration suspended the tariffs for a 90-day window—set to expire on July 9—Indian trade officials are in talks to finalize an interim agreement that would permanently lift or at least reduce these duties. The broader trade deal under discussion is expected to address not only tariff cuts but also regulatory barriers and market access for key Indian exports such as textiles, pharmaceuticals, and software services.
