Trump says India–US trade deal is ‘pretty close’; Rubio puts it at ‘99% done’
US President Donald Trump said the US and India are "pretty close" to a bilateral trade deal, which he called a different kind of deal from America's other pacts. A day earlier, Secretary of State Marco Rubio said the two sides were weeks, not months, from finalising it. The remaining gaps, he said, are about the precise wording.
Why in news
Talks began in February 2025, but stalled after the US imposed 50% tariffs on India: 25% reciprocal plus 25% for buying Russian oil. A framework was agreed in February 2026. Weeks later, the US Supreme Court struck down the President's use of emergency powers to impose tariffs, forcing renegotiation.
Prelims pointers
- Since 2025 the US has signed trade pacts with Vietnam, Japan, South Korea, the UK and the EU.
- On 16 October, Trump paused the Sanctioning Russia and Iran Act of 2026. The Act allowed tariffs of up to 100% on major buyers of Russian energy.
- Free trade agreements are a permitted exception to the WTO's Most-Favoured-Nation rule under Article XXIV of GATT.
- India's recent trade pacts:
- India–EFTA TEPA, in force since October 2025.
- India–UK CETA, signed in July 2025.
- India–New Zealand FTA, in force from 20 October 2026.
Mains angle
The deal tests India's balance between market access and protecting agriculture, dairy and policy space. It also shows how tariffs have become a tool of foreign policy.
