India and the United States are on the brink of finalizing a significant trade agreement, according to White House Press Secretary Karoline Leavitt. Speaking to reporters on Monday, Leavitt emphasized that the deal is nearly complete and highlighted the strong diplomatic rapport between US President Donald Trump and Indian Prime Minister Narendra Modi. She noted that discussions between the President and Commerce Secretary confirmed progress, with public announcements expected shortly.
Labeling India a “strategic ally” in the Asia-Pacific, Leavitt reaffirmed Washington’s commitment to deepening bilateral relations. Her comments came amid External Affairs Minister S. Jaishankar’s visit to the US for the QUAD Foreign Ministers’ Meeting — an alliance of the US, India, Japan, and Australia promoting a free and open Indo-Pacific.
Adding to the diplomatic momentum, it was revealed earlier that President Trump accepted Modi’s invitation to attend the upcoming QUAD Summit in New Delhi. According to India’s Foreign Secretary Vikram Misri, Trump expressed enthusiasm about his upcoming visit, reinforcing the high-level engagement between the two democracies.
Meanwhile, fresh bilateral trade negotiations commenced on June 26 in Washington, where India’s delegation, led by chief negotiator Rajesh Agrawal, held a two-day dialogue with their American counterparts. The primary goal was to finalize an “early harvest” agreement before the US enacts country-specific tariffs on July 9 — part of a broader reciprocal tariff framework affecting 57 nations, including India.
This interim agreement is expected to address long-standing trade irritants and serve as the foundation for a more comprehensive Bilateral Trade Agreement (BTA) targeted for completion by late 2025. The long-term objective is a full-scale Free Trade Agreement (FTA), with both sides aiming to double trade volume to $500 billion by 2030.
India is seeking the rollback of current and impending tariffs — such as a 26% reciprocal tariff package — and the removal of controversial safeguard duties on steel, aluminium, and automobile imports. These tariffs, including 50% duties on steel and 25% on vehicles, are under challenge at the WTO. In exchange, India is proposing that the US reduce its most-favoured-nation (MFN) tariffs on key Indian exports.
Though most technical details are resolved, a few contentious issues await political decisions from leadership on both sides.
