We are going to open up India: Trump on trade deal as Delhi team reaches US

“We’re not going to make deals with everybody. Some, we are just going to send them a letter, say thank you very much… My people don’t want to do it that way. They want to do some of it, but they want to make more deals than I would do,” Trump added.

The final round of talks assumes significance as the previous one yielded little progress, with market access in agriculture and other sensitive areas remaining key sticking points. “This would build pressure on the final round, where India could face more pressure to accept US demands to avoid reciprocal tariffs,” said a person aware of the development.

The roadblock to a trade deal comes as the US has flagged a number of non-tariff barriers and high duties in India, but is yet to commit to several Indian demands — particularly as the US currently lacks a valid Trade Promotion Authority (TPA). Without this, the current US administration is not legally permitted to reduce tariffs. Experts have pointed out that the tariff-related discussions in the bilateral trade agreement (BTA) negotiations may be limited only to executive-level tariffs levied by the current administration, raising questions about the long-term durability of any deal reached.

Under the proposed trade agreement, the US is seeking increased market access for its agricultural products, especially soya and corn—two of its top export items to China. In the likelihood of a protracted trade tussle with China, the US deal with India is expected to ensure greater market access for these products. Additionally, the US may also secure improved access for its apples.

A NITI Aayog working paper published in May stated that India could offer some concessions on “soybean oil imports” to help reduce the trade imbalance, without harming domestic production. India is the world’s largest importer of edible oil, while the US has a surplus of soybean exports.

Indian officials have indicated that diversifying oil and defence procurement is in the country’s strategic interest, and sourcing more from the US could significantly help bridge the goods trade gap. India’s refining capacity has been increasing alongside its oil import dependency, which surged to 90 per cent in April 2025.

Official trade data shows that India has already stepped up oil purchases from the US. India’s import of crude oil from the US rose 11.49 per cent to $63 billion in March 2025 compared to the previous year.