Trump Signals Possible U.S.-India Trade Deal, Threatens Higher Tariffs on Japan

President Donald Trump said the U.S. may soon finalize a trade agreement with India that would lower tariffs and improve market access for American companies. Speaking aboard Air Force One, Trump noted that India appears ready to reduce trade barriers, potentially avoiding the 26% tariff he announced in April, now paused until July 9.

"India doesn’t accept anybody in. I think that’s going to change, and if it does, we’ll have a deal with much lower tariffs," Trump stated. Treasury Secretary Scott Bessent echoed this optimism, telling Fox News that the two nations are "very close" to an agreement that would help India avoid steep tariff hikes, which could rise from 10% to 27% under Trump's new reciprocal trade rules.

Indian officials extended their recent Washington visit in hopes of resolving issues around import duties on auto parts, steel, and agricultural goods. Indian Foreign Minister Subrahmanyam Jaishankar acknowledged the complexity of the negotiations, noting that a successful outcome will require "give and take" from both sides.

Meanwhile, Trump cast doubt on a trade deal with Japan, criticizing the country for refusing to buy U.S.-grown rice while exporting millions of cars to the U.S. He suggested tariffs on Japanese imports could jump to 30% or even 35%, up from the currently paused 24% rate. “We thank you very much, but you’re going to pay whatever number we determine,” Trump said, signaling no intention to extend the July 9 deadline for tariff implementation.

Among key U.S. trading partners, only the U.K. has reached a limited agreement, accepting a 10% tariff on many goods in exchange for special access in aerospace and beef exports.