US and India Aim for $500 Billion Trade Deal by 2030 Amid Tariff Challenges

Howard Lutnick, US Secretary of Commerce, on Tuesday expressed strong optimism about a forthcoming trade agreement between India and the United States, while praising Prime Minister Narendra Modi and the bilateral relationship shared by both nations.
Speaking at the US-India Strategic Partnership Forum ’s Annual Leadership Summit in Washington, Lutnick underlined the deep admiration President Donald Trump holds for India.

“We have a great relationship between our countries. I’m optimistic for a trade deal soon that will benefit both nations,” Lutnick said at the Summit.

“You should expect a deal between the United States and India in the not-too-distant future because I think we found a place that really works for both countries,” he added.

Lutnick also highlighted the unique democratic legitimacy of both Trump and Modi, pointing to their electoral mandates as a common ground for deepening ties.

“President Donald Trump is the only person in our administration elected by the full United States of America, and so is Prime Minister Modi in India.

If you think about the world, how many other leaders have actually been elected by their country? Very, very rare, so that connection is pretty unique because it’s rare,” he said.

“So their (Trump and PM Modi’s) relationship is very strong and very positive. That gives me an easy path to trade negotiations because we start from a very positive place,” Lutnick added.

On Trump's 'America First' Policy

Addressing concerns around Trump’s 'America First' doctrine, Lutnick offered reassurance that the approach does not exclude allies.

“The President thinks America first, but he does not think America only or America exclusively,” Lutnick clarified.
“First, he’s got to take care of home, so we’re big and strong. But then he’s going to take care of his allies.

He is going to make sure he takes care of India, which he deeply, deeply admires and respects, and we are going to have a great, great relationship together.”

Emphasis on AI Partnership

Lutnick also spoke about the importance of global collaboration in the Artificial Intelligence sector. He stressed that the United States is ready to welcome India as a key partner in the AI revolution.

“We love our allies and want our allies to participate in the AI revolution with us.
If India is interested, which of course it is, and it wants to build giant data centres and be a part of that model, we are ready, willing, and look forward to embracing India as a partner and friend,” he said.

Comparing past policies, Lutnick said:

“The Joe Biden administration had a very constrained view, and the Trump administration’s view is to embrace allies.
Have your allies join you in the AI revolution. We are willing to sell our best chips.

But they have to be done in certain ways so they can’t end up in the hands of those that we don’t want to have them.”

India’s Position on Trade Talks

Meanwhile, India’s Commerce Minister Piyush Goyal, currently in Paris to engage with French leadership and business representatives, reiterated that both India and the US aim to provide preferential market access to each other’s businesses.
Goyal confirmed that teams from both countries are actively working on a proposed bilateral trade agreement . When asked about Trump’s recent decision to double tariffs on steel and aluminium imports, Goyal said the issue would be addressed through mutual dialogue.

“The two countries will continue to work together to resolve all these issues bilaterally,” he told reporters.