'India-US trade deal announcement soon,' says White House; cites Trump's relationship with PM Modi

White House press secretary Karoline Leavitt described India as a strategic ally in the Indo-Pacific region during a press briefing on Monday. She said that President Donald Trump shares a very good relationship with Prime Minister Narendra Modi and noted that the India-US trade deal is nearing completion.

Leavitt said, “Yes, the President said that last week (that the US and India are very close to a trade deal), and it 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'll hear from the President and his trade team very soon when it comes to India." 

Responding to a question about China’s role in the Indo-Pacific, Leavitt reiterated that India remains a very strategic ally in the Asia-Pacific. She said the President has a very good relationship with Prime Minister Modi and will continue to have that.

"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.”

Her remarks come as External Affairs Minister S Jaishankar is visiting the United States to participate in the QUAD Foreign Ministers' Meeting. The QUAD, consisting of Australia, India, Japan, and the US, focuses on promoting a free, open, and resilient Indo-Pacific. The alliance began as a coordinated humanitarian response following the 2004 Indian Ocean tsunami.

It was earlier confirmed on June 18 that US President Donald Trump accepted Prime Minister Modi’s invitation to attend the upcoming QUAD Summit in New Delhi. Foreign Secretary Vikram Misri said in a video message that President Trump is excited to come to India for the next QUAD meeting.

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. The Indian delegation, led by chief negotiator and special secretary for commerce Rajesh Agrawal, arrived in Washington for a two-day round of talks.

The main goal of this round is to address existing trade disputes and reach an interim agreement that could form the basis for the first phase of a Bilateral Trade Agreement by September or October 2025. After this initial phase, both sides are expected to begin negotiations for a full free trade agreement with the aim of doubling bilateral trade to 500 billion dollars by 2030.

India is pushing for the US to roll back all current and planned retaliatory tariffs, including a 26 per cent reciprocal tariff comprising a 10 per cent duty that took effect on April 5 and an additional 16 per cent set to begin from July 9. Sources said most elements of a preliminary agreement have been ironed out, but final decisions rest with political leadership to resolve remaining differences.

Two major sticking points continue to hold up the deal. India is also urging the US to eliminate safeguard duties, currently challenged at the World Trade Organisation, such as the 50 per cent tariffs on steel and aluminium and the 25 per cent duties on automobiles and auto parts. In return, India expects Washington to lower its most favoured nation tariffs proportionately.