A senior US official stated on Thursday that the differences between the United States and India regarding a trade deal cannot be resolved overnight, citing geopolitical disagreements. This announcement comes after President Trump declared on Wednesday that the US would impose a 25% tariff on goods imported from India, starting Friday.

The 25% tariff would single out India more severely than other major trading partners. This action threatens to unravel months of discussions between the two nations, potentially undermining a strategic partner of Washington and a counterbalance to China.

According to the US official, "Our challenges with India, they've always been a pretty closed market... there are a host of other kind of geopolitical issues". The official also noted President Trump's concerns regarding India's membership in BRICS and its purchases of Russian oil. While acknowledging constructive discussions with India, the official emphasized the complexity of the relationship and issues, suggesting that a quick resolution is unlikely.

President Trump has reportedly expressed his desire to speak with Prime Minister Narendra Modi before giving final approval to any trade agreement. Negotiations for a trade deal have concluded, with the final draft awaiting Trump's approval for over a week. Key officials on both sides, including U.S. Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, and India's Commerce and Industry Minister Piyush Goyal, have endorsed the pact.

In response to Trump's announcement of new tariffs, India stated that it had "taken note" of the statement and underlined its continued commitment to a fair bilateral trade agreement with the United States. The government emphasized its commitment to protecting the welfare of farmers, entrepreneurs, and MSMEs, drawing a parallel to the recent trade agreement signed with the UK. India has also indicated that it will take all necessary steps to secure its national interests.

Discussions between the United States and India regarding a trade deal have been ongoing for months without a final agreement. Trump has been advocating for greater access for American goods to the Indian market.

In 2024, the total goods trade between the U.S. and India was an estimated $129.2 billion. U.S. goods exports to India in 2024 amounted to $41.8 billion, a 3.4 percent increase ($1.4 billion) from 2023. U.S. goods imports from India totaled $87.4 billion in 2024, up 4.5 percent ($3.7 billion) from 2023. The U.S. goods trade deficit with India was $45.7 billion in 2024, a 5.4 percent increase ($2.4 billion) over 2023.