Trump Flags Delay in India-US Trade Deal: What It Means for Indian Businesses and Consumers

With just two days left for his proposed tariff deadline, Donald Trump has once again brought attention to the pending trade agreement between the US and India. In a recent statement, the former US President said the deal is “not finalized,” raising fresh concerns about what this could mean for exporters, importers, and everyday consumers—especially in India’s growing urban markets and Tier 2 cities.

The proposed deal had aimed to resolve longstanding tariff issues and improve access to each other’s markets. But with no confirmation in sight, uncertainty is back on the table. Trump’s mention of “reciprocal tariffs” has sparked fears of potential price hikes and tighter regulations for goods flowing between the two countries.

For Indian businesses—especially small manufacturers, textile exporters, and auto part suppliers—this limbo means stalled decisions and potential losses. Many were expecting smoother terms of trade to boost profits and scale up operations, particularly in regions like Ludhiana, Coimbatore, and Pune, where export-led industries are key job creators.

On the US side, there’s a growing push for stricter trade terms to protect American businesses. Trump’s latest comments suggest that he wants India to lower its import duties on American goods—from agricultural products to tech hardware—failing which, the US might impose higher tariffs on Indian exports.

This tug-of-war puts Indian consumers in a tricky spot too. If tariffs rise, imported items like gadgets, processed foods, or branded clothing could become more expensive. That impact will be felt most in middle-income households where purchasing power is already stretched.

At the core of this standoff is the issue of market access and fairness. While both sides have expressed interest in a mutually beneficial deal, the lack of movement indicates deeper political and economic disagreements that aren’t easy to resolve overnight.

As the tariff deadline approaches, businesses are watching closely, hoping for clarity. But until a deal is sealed, the uncertainty will continue to cast a shadow over India-US trade—a relationship that holds significant promise but keeps stalling at the finish line.