India Moves Toward Fair Trade Deal with U.S. to Counter Trump’s Tariff Threat

As global trade dynamics shift ahead of the U.S. presidential elections, India is preparing a strategic response to safeguard its economic interests. With former President Donald Trump signaling a potential return to heavy tariffs on imports — including those from India — the Indian government is working on a proactive fair trade agreement with the United States to mitigate any fallout.

Sources close to the Ministry of Commerce and Industry confirm that high-level talks are underway to draft a deal that promotes mutual economic benefits while ensuring Indian exports remain competitive in the American market.

During Trump’s previous term, the U.S. had imposed higher tariffs on several Indian goods and revoked India’s special trade status under the Generalized System of Preferences (GSP), impacting sectors such as textiles, pharmaceuticals, and agriculture. The new trade deal seeks to avoid a repeat of those tensions.

India’s approach is centered around key objectives:

  • Preserving market access for Indian goods in the U.S.

  • Encouraging American investments in Indian infrastructure and manufacturing

  • Ensuring a balanced trade surplus while protecting Indian MSMEs

  • Reducing dependency on China by strengthening Indo-US supply chains

While no formal agreement has been signed yet, discussions have picked up pace amid reports of Trump’s growing influence in the Republican race. Prime Minister Narendra Modi’s administration sees the deal not only as a defensive measure but also as an opportunity to deepen ties with the U.S. in sectors like technology, clean energy, and defense.

Analysts believe that a preemptive deal could signal India’s growing maturity in global diplomacy and trade readiness, especially as the country eyes a larger role in shaping the future of international commerce.

For now, all eyes are on Washington — and whether India’s outreach will turn rhetoric into real economic resilience.