Trump Seeks Direct Talks with Modi to Finalize India-US Trade Agreement

U.S. President Donald Trump is keen to hold a direct conversation with Indian Prime Minister Narendra Modi before granting final approval to a long-pending India-U.S. trade agreement, according to sources cited by 5WH. The deal, which has been under negotiation for months, has reached its final draft and awaits Trump’s sign-off, a process delayed for over a week. Key officials from both nations, including U.S. Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer, and India’s Commerce and Industry Minister Piyush Goyal, have endorsed the agreement.

Sources indicate that Trump’s desire to speak with Modi, whom he refers to as a friend, has been communicated to New Delhi. The two governments are currently coordinating logistics for the call, as Modi is occupied with India’s ongoing Monsoon session of Parliament. Speaking to reporters on Air Force One after a trip to Europe, Trump confirmed the deal’s pending status, stating, “No, it’s not [finalized].” When questioned about potential tariffs, he noted India’s historically high tariffs on U.S. goods but emphasized the strong bilateral relationship, saying, “India’s been a good friend. Over the years, they’ve charged higher tariffs than almost any other country. But now I’m in charge, and you just can’t do that.”

Reports suggest the new trade framework could impose tariffs of 20 to 25% on India, a point Trump acknowledged but did not confirm. He also highlighted his role in de-escalating recent tensions between India and Pakistan, claiming, “They ended the war with Pakistan at my request, and it was great.” However, India’s External Affairs Minister S. Jaishankar clarified in Parliament that the India-Pakistan ceasefire was unrelated to U.S. trade negotiations.

According to U.S. Trade Representatives, bilateral goods trade with India in 2024 totaled $129.2 billion, with U.S. exports at $41.8 billion and imports at $87.4 billion, resulting in a $45.7 billion U.S. trade deficit. The final announcement of the trade deal is expected following the Modi-Trump call, marking a critical step in strengthening economic ties between the two nations.