Lutnick Fuels Market Momentum by Hinting First U.S. Trade Deal Is Nearly Done

Commerce Secretary Howard Lutnick fueled market optimism during a CNBC interview Tuesday, saying,

“I have a deal done, done, done, done, but I need to wait for their prime minister and their parliament to give its approval, which I expect shortly,”

He told anchor Brian Sullivan. The remarks helped lift equities, as investors took them as a clear signal that a breakthrough in U.S.-India trade relations is near.

Lutnick did not name the country, but remarks from Bessent strongly suggest it is likely India.

India and the U.S. have made significant progress toward finalizing a landmark bilateral trade agreement, following meetings between diplomats in Washington from April 23–25. The talks laid the groundwork for a deal expected later this year. The U.S. is now India’s largest trading partner, with two-way trade reaching $129.2 billion in 2024—surpassing China. Both sides are eager to avert a potential tariff clash, as a 90-day suspension on heightened U.S. tariffs is set to expire on July 8.

Cargo vessel Photo by Ian Taylor on Unsplash

U.S. Treasury Secretary Scott Bessent indicated that India could be among the first to strike a deal under President Trump’s revamped trade agenda, which includes a blanket 10% tariff on nearly all trading partners. Bessent pointed to “substantial progress,” echoing optimism following Vice President J.D. Vance’s recent visit to New Delhi. While the agreement is seen as a milestone for U.S.-India relations, it has sparked concern among Indian farmers, who fear reduced protections could leave them vulnerable to an influx of low-cost American agricultural products.