Washington | July 16, 2025 - Donald Trump has claimed that a new trade pact has granted the United States "full access" to Indonesian markets and hinted that a similar agreement with India could soon follow. His comments have sparked both interest and concern among trade analysts, especially in India, where experts warn that any such deal must be approached with caution.

Speaking at a business summit in Florida, Trump said, “We’ve got full access into Indonesia now, it’s a tremendous deal. We’re looking at something along the same lines with India, and we expect great cooperation.” Trump, who is once again a major figure in American politics ahead of the 2026 midterms, emphasized that these deals would support U.S. industries and reduce unfair barriers.

The announcement has caught the attention of Indian policymakers and economic observers. While the idea of expanded trade with the U.S. holds promise, it also raises red flags. A recent report from the New Delhi-based Global Trade Research Initiative (GTRI) urged India to move carefully in any negotiations with the United States, especially considering the transactional and aggressive trade style of Trump-era diplomacy.

“India must proceed with extreme caution,” said a GTRI spokesperson. “We must protect sensitive sectors like agriculture, e-commerce, and pharmaceuticals, which could be exposed under a deal shaped entirely on U.S. interests.”

The Indian government has not officially responded to Trump’s remarks, but officials from the Ministry of Commerce have confirmed that ongoing dialogues on trade cooperation with the U.S. are in preliminary stages. Past negotiations under the Trump administration in 2019–2020 had failed to result in a formal deal, largely due to disagreements on tariffs and market access.

Business leaders in India are divided. Some believe a trade pact could boost exports and attract investment, while others worry it could lead to increased imports and hurt domestic manufacturing.

Trump's comment also comes at a time when India is balancing multiple trade partnerships — including free trade talks with the UK, EU, and Australia - making any U.S. deal a high-stakes decision.

While no formal negotiation has been confirmed, Trump’s statement puts the spotlight back on Indo-U.S. trade ties. Whether or not a deal “along the same lines” as the Indonesia pact will be reached remains uncertain, but the pressure is building on Indian negotiators to tread wisely.