US President Donald Trump said on Tuesday (June 01, 2025) that a major trade agreement between the US and India could be soon. Trump indicated that India is now ready to reduce tax for American companies, which will give American companies a chance to do business in India.

Talking to the media in Air Force One, Trump said, “I think we will have a different kind of business agreement with India. An agreement in which we will be able to go to India and compete openly.” The US President said that India did not open the market for foreign companies yet, but now it is indicating change. He told that if India did this, the US will make a strong trade agreement with low tax.

#Watch On Trade Deals with India, Us President Donald Trump Says, “I think we are going to have a deal with India. And that is going to be a different kind of a deal. It is going to be Compete. Right now, India does not accept anybody in. pic.twitter.com/6C199NGM8B

– ANI (@ani) July 1, 2025

Trump imposed 26% tariff on India on 2 April

On April 2, Trump announced a 26% tariff (import duty) on India, which has been postponed for 90 days. However, a minimum tariff of 10% is still applicable. If this agreement is reached between the two countries, then it can be a big turn in business relationships. Despite Trump’s recent statement, the conversation between the two countries stopped on Tuesday, and the biggest reason for this is India’s dairy sector.

India’s tough stance on dairy

According to government sources, the US wants India to open its dairy market for American products, but India has made it clear that it will not compromise on this demand. A senior official said, “There is no question of concession on dairy. This is a red line for us.”

The dairy sector in India employs about 8 crore people, most of which are small farmers. In such a situation, it is not possible for the government to relax any kind in this sector.

Efforts are being made to postpone agreement

According to a report by Reuters, a delegation of Indian authorities was interacting with the US administration in Washington from last week to Monday. Special Secretary Rajesh Agarwal is leading this delegation from India, and he has extended his journey one more day to overcome the deadlock.

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