In a recent interview with Bloomberg Podcasts, US Commerce Secretary Howard Lutnick highlighted the complexity and potential of a trade agreement between the United States and India. As India’s chief negotiator, Rajesh Agarwal, prepares for his upcoming visit to the US later this month, Lutnick emphasized that any trade pact will require considerable effort and patience due to the large number of tariff lines—over 7,000—that need to be addressed.
“India has been engaging enthusiastically,” Lutnick stated. “I would love to strike a deal—it’s certainly possible. But with 7,000 tariff lines to negotiate, it takes time and it takes work.”
Lutnick suggested that the recently signed trade deal between the US and the UK could serve as a blueprint for upcoming trade agreements, including the one with India. He explained that successful trade deals hinge on mutual market access and discussions around sector-specific tariffs. “If you want reciprocal tariffs, you need to open your market,” he said. “We may arrive at a smart, mutually beneficial solution—just like we did with the UK.”
To illustrate this point, Lutnick pointed to the UK’s offer to supply Rolls Royce engines to Boeing, while simultaneously committing to purchase $10 billion worth of Boeing aircraft from the US as part of the bilateral agreement. He also indicated that the Trump administration is interested in establishing a flagship trade deal in Asia that could set a precedent for future regional agreements.
As per the recent deal structure, the US affirmed that its baseline 10% tariff will remain intact even after reaching bilateral agreements. “The reciprocal tariff rate of 10%, as originally announced on Liberation Day, is in effect,” read a statement from the White House.
On May 8, President Donald Trump announced that India has agreed to eliminate its high tariffs after what he described as highly productive talks. “India has one of the highest tariffs in the world… They’ll drop it to nothing,” Trump claimed.
The trade relationship between the two nations is already showing momentum. India’s exports to the US surged to $11.2 billion in March, contributing to a $15 billion bilateral trade volume for the month. This growth has been largely attributed to a temporary 90-day pause on tariffs. President Trump also hinted at a major upcoming announcement regarding a trade deal with a “big, highly respected” country—fueling speculation that India is the focal point.
