'Trump-Modi ties strong, US-India trade deal very soon': White House
'Trump-Modi ties strong, US-India trade deal very soon': White House
The White House has confirmed that a trade deal between the United States and India is nearing completion.
"Yes, the president said that last week (that the US and India are very close to a trade deal), and it remains true," White House press secretary Karoline Leavitt said while addressing a question on the India-US trade agreement.
"They are finalizing these agreements,...you'll hear from the President and his trade team very soon when it comes to India," Leavitt said.
India a strategic ally: Leavitt
Leavitt also praised India's role as a strategic ally of the US in the Indo-Pacific region, emphasizing Trump's close personal relationship with Indian Prime Minister Narendra Modi.
"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 said.
Jaishankar in US for Quad meeting
The announcement comes as External Affairs Minister S Jaishankar is in the US for the Quad Foreign Ministers's Meeting.
The meeting includes Australia, India, Japan, and the US to ensure a "free and open" Indo-Pacific region.
Notably, President Trump had accepted PM Modi's invitation to attend an upcoming Quad Summit in New Delhi this year.
Another round of bilateral trade talks
On June 26, India and the US started another round of bilateral trade talks.
The goal is to finalize an early harvest deal before the US imposes reciprocal tariffs on imports, including those from India.
The Indian delegation, led by Chief Negotiator and Special Secretary for Commerce Rajesh Agrawal, arrived in Washington for two days of discussions last week.
India pushing US to roll back tariffs
India is aiming for the US to roll back all current and planned retaliatory tariffs.
These include a 26% reciprocal tariff, which comprises a 10% duty effective from April 5 and an additional 16% starting July 9.
Negotiators have ironed out most elements of a preliminary agreement, but final decisions now rest with political leadership to resolve the remaining differences.
Negotiations crucial for interim agreement, bilateral trade agreement
India is also pushing for the US to eliminate safeguard duties, such as 50% tariffs on steel and aluminum and 25% duties on automobiles and auto parts.
In return, India expects Washington to lower its most-favored-nation (MFN) tariffs proportionately.
These negotiations may form the bedrock as both sides aim for an interim agreement that could lead to a Bilateral Trade Agreement (BTA) by September or October 2025.