Trump-Modi ties ‘very strong’, India-US trade deal nearing completion: White House

The White House confirmed President Trump and PM Modi share a strong relationship, with an India-US trade deal close to finalisation. Talks aim to resolve tariff disputes and strengthen bilateral ties ahead of Trump’s visit for the upcoming QUAD Summit.

• Vibhuti Pathak
• 01 July, 2025

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By: Vibhuti Pathak

The White House has confirmed that the much-anticipated US-India trade deal is nearing completion, highlighting the strong personal rapport between president Donald Trump and prime minister Narendra Modi. White House press secretary Karoline Leavitt described India as a “strategic ally” and emphasized that the agreement is in its final stages, with an official announcement expected soon.

“They are finalising these agreements, and you’ll hear from the President and his trade team very soon when it comes to India,” Leavitt said, underscoring the administration’s optimism about the deal.

Strategic Partnership and QUAD Engagement

Leavitt reiterated the importance of India as a key partner in the Indo-Pacific, especially in the context of growing regional tensions. “India remains a very strategic ally in the Asia Pacific and the President has a very good relationship with Prime Minister Modi, and he will continue to have that,” she stated.

The announcement comes as External Affairs Minister S Jaishankar visits the US for the QUAD Foreign Ministers’ Meeting, reinforcing the countries’ shared commitment to a free, open, and resilient Indo-Pacific.

President Trump has also accepted PM Modi’s invitation to attend the upcoming QUAD Summit in New Delhi, further cementing the bilateral relationship and strategic cooperation between the two nations.

Details of the Trade Negotiations

Trade talks between India and the US have accelerated in recent weeks, with both sides aiming to finalize an interim agreement before the US resumes reciprocal tariffs on imports from 57 countries—including India—starting July 9. The current negotiations are focused on resolving outstanding disputes and establishing an “early harvest” deal, which would lay the groundwork for a comprehensive Bilateral Trade Agreement (BTA) by fall 2025.

Key issues on the table include:

• Tariffs: India is pushing for the rollback of all current and planned US retaliatory tariffs, including a 26 per cent reciprocal duty (10 per cent already in effect, with an additional 16 per cent set for July 9).
• Market Access: The US is seeking greater access for its agricultural products, including GM crops and cattle feed, which poses challenges for India’s small-scale farming sector.
• Safeguard Duties: India wants the removal of safeguard tariffs on steel, aluminium (50 per cent), and automobiles (25 per cent), while the US expects proportional reductions in India’s most-favoured nation (MFN) tariffs.
• Digital Trade and Regulatory Barriers: Both sides are negotiating issues related to digital data flows, technical barriers to trade, and regulatory standards.

While most elements of the interim deal have been agreed upon, final decisions on sensitive issues—particularly in agriculture and dairy—are pending at the highest political levels.

Path to a Comprehensive Agreement

The interim deal, if concluded, will be the first step toward a full-fledged free trade agreement, with both countries targeting a doubling of bilateral trade to $500 billion by 2030. Expert-level discussions are expected to continue virtually and in person, with the aim of resolving remaining differences and expanding cooperation in new sectors.

Despite some remaining hurdles, the momentum behind the US-India trade deal reflects the broader strategic alignment between the two democracies. The upcoming announcement is expected to mark a new chapter in economic and geopolitical ties, with both sides committed to deepening their partnership for mutual growth, security, and innovation