Trump-Modi Bond Grows Stronger, Trade Deal Announcement Expected Soon
During a press briefing on Monday (US local time), White House press secretary Karoline Leavitt referred to India as a “strategic ally” in the Indo-Pacific region while answering a question about the India-US trade agreement. She mentioned that President Donald Trump and Prime Minister Narendra Modi have a “very good relationship” and highlighted that the trade deal is nearing completion.
The President stated last week that the US and India are very close to a trade deal, and this is still true. I have just had a conversation with our Secretary of Commerce regarding it. He was with the President in the Oval Office. They are putting the finishing touches on these agreements, and you will soon hear from the President and his trade team regarding India
When asked about China’s role in the Indo-Pacific, Leavitt emphasized, “India remains a very strategic ally in the Asia Pacific and the President has a very good relationship with Prime Minister Modi, which will continue.”
Her comments coincide with External Affairs Minister S Jaishankar’s ongoing visit to the United States for the QUAD Foreign Ministers’ Meeting. The QUAD, made up of Australia, India, Japan, and the US, aims to foster a free, open, and resilient Indo-Pacific region. The alliance originated as a unified humanitarian response to the Indian Ocean tsunami in 2004.
It was confirmed earlier on June 18 that US President Donald Trump accepted Prime Minister Modi’s invitation to the upcoming QUAD Summit in New Delhi. PM Modi has invited President Trump to India for the upcoming QUAD meeting. In a video message, Foreign Secretary Vikram Misri stated, “While accepting the invitation, President Trump expressed his excitement about coming to India.”
India-US trade talks
As per sources acquainted with the negotiations, on June 26, India and the US initiated another round of bilateral trade discussions to finalize an early harvest agreement before the US implements country-specific reciprocal tariffs on imports from 57 countries, including India, beginning July 9.
<pp This round’s primary aim is to tackle current trade disputes and secure an interim agreement that might lay the groundwork for the initial phase of a Bilateral Trade Agreement (BTA) by September or October 2025.
Following this initial phase, both parties are anticipated to commence discussions on a comprehensive free trade agreement (FTA) to increase bilateral trade to $500 billion by 2030.
India is advocating for the US to eliminate all existing and proposed retaliatory tariffs, which include a 26% reciprocal tariff made up of a 10% duty that began on April 5 and an additional 16% scheduled to commence on July 9.
According to sources involved in the discussions, negotiators have settled most aspects of a preliminary agreement, but the political leadership must now make final decisions to resolve a few remaining discrepancies. They added that two significant sticking points are still delaying the deal.India is additionally encouraging the US to remove safeguard duties, which are currently under dispute at the World Trade Organisation. This includes eliminating 50% tariffs on steel and aluminium, as well as 25% duties on automobiles and auto parts. Als Gegenleistung, India expects Washington to lower its most favoured nation (MFN) tariffs proportionately.