India, US to seal trade deal on Thursday as Trump teases ‘big announcement’

New Delhi: US President Donald Trump is set to announce a major trade deal with India during a news conference at the Oval Office today at 10:00 A.M. EDT. 

The announcement, which Trump teased on Truth Social late Wednesday, read, “Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!”

The timing of this deal is significant, coming amid escalating trade tensions between the US and China. 

On April 9, 2025, Trump implemented a 90-day tariff pause, setting most tariffs at a baseline of 10% for US trading partners, while maintaining steep 145% duties on Chinese imports. Beijing responded with a 125% tariff hike on US goods and trade restrictions on 18 American companies, leading to a sharp downturn in financial markets and growing fears of a global recession.

The agreement is expected to bolster India’s strategic importance in the Indo-Pacific, where the US has sought to counter China’s growing influence.

Speculation about the identity of the trade partner had ranged from Japan to the United Kingdom, but India’s rapid economic growth and recent diplomatic engagements with the US made it a leading contender.

India, the world’s fifth-largest economy, has emerged as a critical player in Trump’s efforts to realign US trade policy. The two nations have been in advanced talks to finalise a bilateral agreement aimed at reducing trade barriers, promoting technology transfer, and expanding market access for American businesses in the Indian market.

Sources indicate that this agreement could involve tariff reductions on Indian textiles, pharmaceuticals, and information technology services – sectors where India has long sought greater access to the US market. In return, the US is likely to secure concessions on agricultural imports and digital trade, aligning with Trump’s broader strategy to boost American exports.

While a successful deal with India could stabilize markets and boost investor confidence, any perceived imbalance could provoke further trade conflicts with Beijing and other key U.S. partners.

The White House has been in talks with over 75 countries to negotiate new trade terms, with White House economic advisor Kevin Hassett confirming offers from 15 nations in April. Today’s announcement will be closely scrutinized for signs of a broader realignment in U.S. trade strategy, as Trump seeks to cement his economic legacy in the final year of his second term.