TMTPOST -- Despite increasing skepticism on a trade deal with Japan ahead the July 9 deadline, U.S. President Donald Trump on Tuesday appeared more optimistic on an agreement with India.

Credit：Xinhua News Agency

When asked about he prospects for a U.S.-India agreement over the next week, Trump said: “possibly. That’s going to be a different kind of a deal.”  “It’s going to be a deal where we’re able to go in and compete. Right now, India doesn’t accept anybody in,” said Trump. “I think India is going to do that, and if they do that, we’re going to have a deal for much less tariffs.”

The White House on Monday has expressed upbeat on the upcoming deal with India. “We will hear about a trade deal with India very soon,” White House press secretary Karoline Leavitt told reporters at a briefing. Leavitt didn’t provide details about the trade negotiations, but her remarks implied India remains a priority in the Trump administration’s trade agenda.

Trump on April 9 said that he has authorized a 90-day pause and “a substantially lowered reciprocal tariff” of 10% during this period, both effective immediately. India, like many other countries, since then faced a 10% baseline reciprocal tariffs. The original proposed 26% reciprocal tariffs on India are set to kick in on July 9, after the 90-day pause, if no trade deal is made to avoid these levies by the deadline.

India’s chief negotiator Rajesh Agarwal has extended his stay in the U.S. to work to clinch a deal before the July deadline. India’s foreign minister Subrahmanyam Jaishankar said earlier this week his country is close to finalizing an agreement with the U.S., as they work through thorny issues including coming industry-specific tariffs and market access for genetically modified crops from America. 

But a senior Indian official told local news media outlet PTI that the South Asian economy has toughened its stance, particularly on demands for duty concessions in agriculture and dairy sectors, which are treated as politically and economically sensitive areas.