Trump and Modi share strong ties, both nations close to trade deal: White House
India and the US have been busy with bilateral talks to finalise a trade deal before the July 9 deadline set by Trump when reciprocal tariffs are set to take effect
White House press secretary Karoline Leavitt on Monday (June 30) said that US President Trump has a “very good relationship” with Prime Minister Modi, and that India “remains a very strategic ally in the Asia Pacific”.
Responding to a question about the trade deal between the US and India, she said President Trump had spoken about it the previous week and that the two nations are very close to a deal.
Leavitt said she spoke to the US Secretary of Commerce who had just had a meeting with President Trump, and that they were finalising the agreements and everyone would hear about it from the President and his trade team very soon.
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“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,” said the press secretary in response to a question about how the US President sees China’s role and its influence in the Indo-Pacific region.
Trade talks
India and the US have been busy with bilateral talks to finalise a trade deal before the July 9 deadline set by President Trump when the American country-specific reciprocal tariffs are set to take effect.
The Indian delegation led by Rajesh Agrawal, special secretary for commerce, arrived in Washington last week for a two-day round of talks. The primary objective in this round is to tackle existing trade disputes and arrive at an interim agreement that could become the foundation for the first phase of a Bilateral Trade Agreement (BTA).
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After this round of talks, the two countries will start the process for a full-fledged Free Trade Agreement (FTA) that would aim to double bilateral trade to $500 billion by the year 2030.
India’s stand
India is insisting that the US roll back all the retaliatory tariffs, including a 26 per cent reciprocal tariff – the 10 per cent tariff that took effect already on April 5 this year, and the additional 16 per cent that is supposed to be imposed from July 9.
India is also pushing America to remove safeguard duties – the 50 per cent duties on steel and aluminium and the 25 per cent tariffs on automobiles and auto components. These are presently being challenged at the World Trade Organisation.
Also read: Expect US-India trade deal in not-too-distant future: US commerce secy
The final aspects of the trade deal will have to be decided on by the political leadership of both nations.
Jaishankar in US
External Affairs Minister S Jaishankar is now in the United States to take part in the QUAD Foreign Ministers’ meeting.
The QUAD comprises of India, Australia, Japan, and the US.
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It has been confirmed that President Trump has 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,” said Foreign Secretary Vikram Misri.