White House Calls India a ‘Strategic Ally’ as Trump-Modi Trade Deal Nears Completion

White House Press Secretary Karoline Leavitt on Monday reaffirmed India’s status as a “strategic ally” in the Indo-Pacific and said a long-awaited trade deal between the U.S. and India is nearing finalisation.

Leavitt, speaking at a press briefing in Washington, also emphasised the strong personal rapport between President Donald Trump and Prime Minister Narendra Modi.

“Yes, the President said that last week, and it remains true,” Leavitt said when asked about progress on the deal. “They are finalising these agreements, and you’ll hear from the President and his trade team very soon when it comes to India,” she told reporters, according to ANI.

On the broader geopolitical context, she reiterated the administration’s Indo-Pacific priorities:

“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.”

QUAD Diplomacy & Upcoming Summit

Leavitt’s comments came as India’s External Affairs Minister S. Jaishankar was visiting the U.S. for the QUAD Foreign Ministers’ Meeting. The QUAD—comprising India, the U.S., Japan, and Australia—aims to ensure a free and open Indo-Pacific.

President Trump has also accepted PM Modi’s invitation to attend the upcoming QUAD summit in New Delhi.

“President Trump said he is excited to come to India,” Foreign Secretary Vikram Misri confirmed on June 18.

India-U.S. Trade Talks: Key Highlights

Ongoing bilateral talks are focused on securing an early harvest trade deal ahead of planned U.S. tariffs set to take effect on July 9. A two-day round of negotiations began on June 26 in Washington, led by India’s chief negotiator Rajesh Agrawal.

What’s at Stake:

• Tariffs: India wants rollback of retaliatory and safeguard duties, including a 26% tariff due to begin on July 9.

• Steel, aluminium, auto duties: India is pressing for removal of 50% and 25% U.S. duties, respectively.

• BTA Framework: The interim deal could lay the groundwork for a broader Bilateral Trade Agreement (BTA) by late 2025, followed by a full Free Trade Agreement (FTA) aiming to double trade to $500 billion by 2030.

Most technical details have been ironed out, but final decisions on a few politically sensitive issues now rest with top leadership on both sides, sources said.

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