On Wednesday, U.S. President Donald Trump stated that the United States is nearing a trade agreement with India, suggesting that American products could soon receive broader access to Indian markets, as reported by Reuters. During a meeting at the Oval Office with Bahrain’s Crown Prince and Prime Minister, Salman bin Hamad Al Khalifa, Trump remarked, “We’re very close to a deal with India, where they open it up.” He noted that the U.S. has already made trade deals with several countries and hinted that India might be next, though talks are ongoing. According to Trump, simply sending a formal letter could signal the completion of a deal.

Reaffirming this position, Trump said another agreement is likely on the way, potentially with India, along with other major trade announcements. He also referenced the United States’ deal with Japan and hinted at broader measures involving over 150 smaller economies with whom the U.S. has limited trade engagement. Trump’s comments followed news from the previous day about a new trade deal with Indonesia, in which the country will now face a 19 percent tariff on exports to the U.S.—lower than the initially proposed 32 percent. In return, the U.S. will enjoy greater market access without tariff and non-tariff restrictions. Trump suggested that India might face similar treatment under a potential interim deal, possibly with tariffs exceeding 10 percent.

He further revealed that formal tariff notices will be sent to more than 150 countries, informing them of the rates they will be subject to under the revised U.S. trade policy. These countries, mainly smaller economies, have minimal trade activity with the U.S. Trump stated that the administration has extended the deadline for renegotiating trade terms to August 1, allowing nations more time to respond and avoid steep duties. While earlier indications pointed toward structured bilateral negotiations, Trump now appears to be using these letters as instruments of trade policy—effectively treating them as binding deals. Still, he noted that countries willing to engage in discussions could potentially negotiate for lower tariffs.

The announcement has reintroduced a sense of uncertainty in global markets. Although many of the proposed tariffs were first introduced in April and temporarily paused due to market instability, their formal rollout has caught many off guard. This shift, particularly surprising to trading partners like the European Union, marks a departure from conventional negotiation-based strategies and underscores a more unilateral approach in U.S. trade policy.

Disclaimer: This image is taken from PTI.