Trump eyes trade pacts with India and Pakistan amid renewed diplomacy

US President Donald Trump on Friday expressed confidence that Washington would soon clinch trade agreements with both India and Pakistan.

Speaking to reporters upon arrival in New Jersey, Trump’s remarks signal a renewed American push for deeper economic engagement in South Asia, as diplomatic tensions between the two nuclear-armed neighbours appear to ease.

What did Trump say?

As per Reuters, President Trump stated he was optimistic about reaching trade deals with both India and Pakistan.

While addressing reporters in New Jersey, Trump said, “We’re going to make a trade deal with Modi of India,” and suggested that Pakistan would also come to the negotiating table.

His comments follow high-level diplomatic engagements involving both countries. On June 18, Trump met Pakistan’s army chief General Asim Munir at the White House, a rare and symbolic move aimed at reducing regional tensions.

As quoted by Reuters, Trump later claimed that his intervention helped avert a full-blown crisis between India and Pakistan, remarking, “I stopped the war … I love Pakistan. I think Modi is a fantastic man.”

Talks underway with India and Pakistan

According to Reuters, US and Indian trade negotiators recently concluded four days of talks in New Delhi, making significant progress towards an interim trade agreement.

The proposed deal, which may be finalised by the end of June, reportedly includes market access for US agricultural exports such as wheat, dairy and corn, and discussions around reducing Indian tariffs.

Meanwhile, Pakistan is also preparing to send a delegation to Washington to begin formal trade discussions.

As per Reuters, Pakistan’s commerce ministry has confirmed that upcoming talks will address US tariffs and potential investment opportunities, particularly in sectors like mining. Islamabad is expected to offer concessions to attract US companies in an effort to diversify its struggling economy.

Why it matters?

The prospect of simultaneous trade deals with India and Pakistan is geopolitically significant. For the US, deeper trade ties with India could boost exports and enhance supply chain resilience, especially as Washington looks to reduce reliance on China.

India, already the largest destination for US exports in South Asia, is seen as a critical partner in Washington’s Indo-Pacific strategy.

At the same time, opening talks with Pakistan indicates a broader American strategy to stabilise regional dynamics through economic diplomacy.

According to Reuters, Islamabad hopes trade ties will ease pressure from existing US tariffs and attract new foreign investment, particularly in strategic sectors.

For Trump, this dual-track approach strengthens US influence in the region ahead of the 2026 elections and underscores his transactional style of diplomacy.

What’s next?

While Trump’s prediction is optimistic, any future deals will require complex negotiations, compromises on tariffs, and clarity on long-standing issues such as market access and intellectual property.

Still, with talks already underway and Trump personally invested in the outcome, the coming months may see major movement on US trade policy in South Asia.

(With inputs from the agencies)