Trump Praises Modi, Trade Deal Awaited
US President Donald Trump stated that Washington and New Delhi are getting closer to finalizing a long-negotiated trade deal. The statement came as Trump met with Indian Prime Minister Narendra Modi on the sidelines of the G7 Summit in France on Wednesday (June 17).
Trump praised Modi as a very strong negotiator and said their personal relationship remains excellent. He also said he would visit India someday, though he did not specify a time. This in-person meeting is the latest effort by the two countries to improve relations after a year marked by tensions over tariffs, Pakistan, and the Iran war.
Maritime security was a key focus of the meeting. Modi touched on the US attack on an Indian-manned vessel in the Gulf of Oman, which killed at least three sailors. The vessels were targeted in a US blockade of shipping to and from Iranian ports.
Modi emphasized that freedom of navigation must be guaranteed and that the safety of thousands of Indian sailors working in global trade routes should be a priority. He expressed confidence that a US-Iran peace deal could help ensure the safety of sailors and reduce risks in maritime routes.
US-India relations were also strained by Trump's claim that he played a role in brokering a ceasefire between India and Pakistan after a brief military clash last year. New Delhi denied the claim, while Trump's close ties with Pakistan's leadership, including army chief Asim Munir, have become a sensitive factor in regional diplomatic dynamics.
On defense issues, Trump said the US-India relationship remains strong and said Washington would come to India's aid if it were attacked. This statement signaled that despite political and diplomatic differences, the US still views India as a vital strategic partner in the regional security architecture.
On the trade front, the two countries are finalizing the details of an interim trade pact agreed to in February. The deal was originally scheduled for signing in March but was delayed after a US Supreme Court ruling invalidated Trump's reciprocal tariffs. In the previous draft, Indian exports would have been subject to an 18% tariff, lower than the 50% tariff announced last year.
US and Indian negotiators have met twice since March, including in Washington in April and in a four-day meeting in New Delhi this month. However, Indian officials believe that finalizing the deal still depends on the results of two Section 301 trade investigations, which could form the basis for additional tariffs on several US trading partners.
For the market, the US-India agreement has the potential to reduce tariff uncertainty and clarify the direction of trade relations between the two major economies. However, the process remains influenced by political factors, maritime security, and the US's stance on Pakistan and Iran. The next focus will be on the visit of US Trade Representative Jamieson Greer to India and whether the two sides can resolve the tariff issue before the interim agreement is signed. (arl)
Source: Newsmaker.id
