US President said the proposed deal could provide American companies greater access to the Indian market in line with the trade pact between the US and Indonesia…reports Asian Lite News
US President Donald Trump has indicated that the ongoing negotiations between India and the US for a much-anticipated interim trade deal are on track and it could be sealed soon. Trump said the proposed deal could provide American companies greater access to the Indian market in line with the trade pact between the US and Indonesia.
India and the US have been holding negotiations for the trade pact primarily to keep the tariffs below 20%.
“We made a deal with Indonesia…We have full access into Indonesia,” the US President told reporters. The US President said his administration is going to announce a few other trade deals and mentioned India in that context. Under the trade deal, Indonesia is giving the US access to the country, which we never had, Trump said.
“That’s probably the biggest part of the deal…India is basically working along that same line. We are going to have access to India,” he said. Washington has already sent letters to several countries sharing details of reciprocal tariff rates that would come into effect on August 1, 2025.
Hours after announcing the agreement on Truth Social, Trump told reporters that it calls for Indonesia not to charge any tariffs on American exports, while the US will impose a 19 per cent tariff on Indonesian exports.
“So we made a deal with Indonesia. I spoke to their really great president, very popular, very strong, and smart. And we made the deal. We have full access to Indonesia… As you know, Indonesia is very strong in copper. But we have full access to everything. We will pay no tariffs,” he said.
“So they are giving us access into Indonesia, which we never had. That’s probably the biggest part of the deal. And the other part is that they are going to pay 19 per cent, and we are going to pay nothing. I think it’s a good deal for both parties. But we will have full access into Indonesia. And we have a couple of those deals that are going to be announced,” the US President added.
According to CNN, Indonesia shipped $20 million worth of copper to the US last year, according to US Commerce Department data, that’s far behind top suppliers Chile and Canada, which sent $6 billion and $4 billion worth of the metal to the US last year.
New Delhi hopes it will be able to strike a deal with the US to avoid the reciprocal tariffs. At the same time, India has indicated that it will not enter into the trade deal in a hurry. India does not enter into any trade agreement based on deadlines and will accept the proposed trade deal with the US only when it is fully finalised, properly concluded and in the national interest, Commerce Minister Piyush Goyal said earlier this month.
An Indian Commerce Ministry team is in Washington for another round of talks on the proposed trade agreement. India has hardened its position on the US demand for duty concessions on agri and dairy products. New Delhi has, so far, not given any duty concessions to any of its trading partners in a free trade agreement in the dairy sector.
New Delhi is seeking the removal of this additional tariff (26%). It is also seeking the easing of tariffs on steel and aluminium (50%) and the auto (25%) sectors. President Trump announced heavy tariffs on a number of countries, including India, on April 2. However, it was soon postponed for 90 days until July 9 and later to August 1.
