The US president did not offer any details on how the deal would be different, or when it is likely to be finalized
US President Donald Trump has said he expects the finalization of a “much different kind” of trade deal with India soon, boosting hopes that a breakthrough is near after months-long negotiations appear to have stalled over bilateral trade concessions.
Earlier this month, Indian Finance Minister Nirmala Sitharaman said the negotiations hit a “plateau,” making further concessions difficult for both sides.
India, which currently faces 10% tariffs on exports to the US, has sought an advantage over its competitors in South Asia in the American market. In return, Prime Minister Narendra Modi’s government is willing to allow market access to US companies, apart from some sectors in which local industries could be harmed.
“They want to make a deal. We’re going to make a deal. Pretty close, yeah… It’s going to be a much different kind of a deal than we’ve done,” Trump told reporters at the Oval Office on Tuesday.
The US president did not explain what he meant by a “much different deal” and did not provide a time frame.
Secretary of State Marco Rubio said on Tuesday in Mumbai that a deal could be reached in weeks, adding that the countries are “as close as you can be without having an executed agreement.” Rubio is in India to tap the country’s “refining superpower” status to cool global oil prices.
A trade deal would offer a significant boost to a host of India’s export-oriented sectors, including pharmaceuticals, engineering goods, textiles, electronics, and information technology-related services, NDTV reported.
The recent passage of the Russia sanctions act – which gave Trump the authority to impose up to 100% tariffs on Russia’s top oil buyers, including India – frayed ties and threatened to stall the trade talks.
Trump, however, suspended these sanctions last week, in what was seen as a conciliatory gesture to New Delhi.
