India-US Trade Deal Nearing Completion
White House Statement🤝
During a press briefing on Monday (US local time), White House Press Secretary Karoline Leavitt described India as a “strategic ally” in the Indo-Pacific region. Addressing a question on the ongoing trade negotiations, she said:
“Yes, the President said last week that the US and India are very close to a trade deal, and that remains true. I just spoke to our Secretary of Commerce about it. He was in the Oval Office with the President. They are finalising these agreements, and you will hear from the President and his trade team very soon when it comes to India,” ANI news agency quoted her as saying.
India as a Strategic Ally🌏
Responding to a question about China’s role in the Indo-Pacific, Leavitt reiterated:
“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.”
President Trump to Attend QUAD Summit🗓️
Earlier, on June 18, it was confirmed that President Trump accepted Prime Minister Modi’s invitation to attend the upcoming QUAD Summit in New Delhi.
“For the next meeting of QUAD, PM Modi invited President Trump to India. While accepting the invitation, President Trump said that he is excited to come to India,” Foreign Secretary Vikram Misri said in a video message.
India-US Trade Talks: Latest Updates💼
On June 26, India and the US began another round of bilateral trade talks aimed at finalising an early harvest deal before the US imposes country-specific reciprocal tariffs on imports from 57 countries, including India, starting July 9, according to people familiar with the discussions.
The Indian delegation, led by Chief Negotiator and Special Secretary for Commerce Rajesh Agrawal, arrived in Washington last week for a two-day round of negotiations. The primary objective is to resolve existing trade disputes and reach an interim agreement that could serve as the foundation for the first phase of a Bilateral Trade Agreement (BTA) by September or October 2025.
Following this initial phase, both sides are expected to begin negotiations for a full-fledged Free Trade Agreement (FTA) with the goal of doubling bilateral trade to $500 billion by 2030.
Key Sticking Points🔍
India is pressing for the US to roll back all current and planned retaliatory tariffs, including a 26% reciprocal tariff – comprising a 10% duty that took effect on April 5 and an additional 16% set to begin from July 9.
Sources involved in the talks indicated that most elements of a preliminary agreement have been ironed out by negotiators, but final decisions now rest with the political leadership to resolve a few remaining differences. Two major sticking points continue to hold up the deal.
India is also pushing for the US to remove safeguard duties, which are currently being challenged at the World Trade Organisation, including the 50% tariffs on steel and aluminium and the 25% duties on automobiles and auto parts. In return, India expects Washington to lower its most favoured nation (MFN) tariffs proportionately.
Looking Ahead🌟
With both sides aiming for an early harvest deal in the coming weeks, all eyes remain on the final announcement from President Trump and his trade team.
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