White House Hints at Imminent US-India Trade Deal Amid Strong Trump-Modi Rapport

In a significant development, the White House has signaled that a much-anticipated trade deal between the United States and India is on the cusp of completion. This announcement comes as relations between President Donald Trump and Prime Minister Narendra Modi continue to flourish, cementing India's role as a vital strategic partner in the Indo-Pacific region.

During a recent press briefing, White House press secretary Karoline Leavitt underscored the deep bond between the two leaders, stating that President Trump shares a "very good relationship" with Prime Minister Modi. She further elaborated that top officials, including the Secretary of Commerce, are in the final stages of solidifying the trade agreements. "You'll hear from the President and his trade team very soon when it comes to India," Leavitt assured reporters, reiterating earlier statements from the President about the deal being "very close."

Leavitt's remarks also reinforced India's crucial position in the Asia-Pacific, especially in light of ongoing discussions surrounding China's influence. "India remains a very strategic ally in the Asia Pacific," she emphasized, highlighting the enduring nature of the US-India partnership.

This high-level engagement coincides with India's External Affairs Minister S. Jaishankar's visit to the United States for the QUAD Foreign Ministers' Meeting. The QUAD, a strategic alliance comprising Australia, India, Japan, and the US, originated from a coordinated humanitarian response to the 2004 Indian Ocean tsunami and is now dedicated to fostering a free, open, and resilient Indo-Pacific. Adding to the momentum, President Trump recently accepted Prime Minister Modi's invitation to attend the upcoming QUAD Summit in New Delhi, expressing his excitement for the visit.

Navigating the Trade Landscape

The current buzz around a trade deal follows intensive bilateral discussions that commenced on June 26. These talks are geared towards finalizing an "early harvest" agreement before the US implements reciprocal tariffs on imports from 57 countries, including India, beginning July 9.

An Indian delegation, led by chief negotiator Rajesh Agrawal, engaged in two days of crucial talks in Washington last week. Their primary objective: to resolve existing trade disputes and lay the groundwork for the initial phase of a Bilateral Trade Agreement (BTA) by September or October 2025. This preliminary agreement is expected to pave the way for a comprehensive Free Trade Agreement (FTA), with an ambitious goal of doubling bilateral trade to an impressive $500 billion by 2030.

At the heart of India's demands is the rollback of all current and proposed retaliatory tariffs by the US, including a 26% reciprocal tariff that includes a 10% duty already in effect since April 5 and an additional 16% set to begin from July 9. Sources close to the negotiations reveal that most elements of a preliminary agreement have been ironed out, with only a few key differences awaiting resolution at the political leadership level.

India is also advocating for the elimination of safeguard duties on steel, aluminum, automobiles, and auto parts – tariffs currently under challenge at the World Trade Organization. In return, India anticipates a proportionate reduction in Washington's most favored nation (MFN) tariffs.