A new threat of 12.5% tariffs hangs over trade talks between the United States and India, as Donald Trump prepares to meet Indian Prime Minister Narendra Modi at the G7 summit in France. The two leaders will discuss the agreement, but Washington does not expect to sign it during the meeting.
Negotiations will continue after the summit, when US Trade Representative Jamieson Greer will travel to India for another session.
The summit is scheduled to run from June 15 to 17 in Evian-les-Bains. Trump will attend with leaders of major industrial economies, while India will send a high-level delegation. A US official allegedly said Modi wants a greater global role for India and considers closer ties with Washington to be part of that goal.
According to Reuters, the official said that Trump will only accept conditions that he considers strong, adding: “We believe it is possible to reach a very good agreement.”
Trump and Modi review tariff demands before Greer continues talks in India
The G7 meeting will not produce any conclusive agreement on trade. Trump and Modi will be able to gauge where the negotiations currently stand before the delegation begins discussing issues like tariffs and market access again. Greer’s subsequent trip the following week would push the process into another phase.
India wants lower customs duties and preferential treatment as per the initial agreement. According to Piyush Goyal, India’s Commerce Minister, said the initial phase of the bilateral agreement is likely to be completed by mid-July. This gives both countries just a few extra weeks to resolve the rest of their differences.
Relations have faced pressure for two reasons. Washington has imposed tariffs on Indian products, and Trump has repeatedly said it helped end the brief fighting that erupted last year between India and Pakistan. New Delhi rejects this narrative. The tone has become less hostile in recent weeks, allowing officials to continue negotiating.
The leaders are also expected to discuss energy security. Indian officials said that possible purchases of Venezuelan oil may occur. This issue now sits alongside another pressing problem related to ships, tankers, and the Strait of Hormuz.
India on Thursday demanded that the United States stop attacking commercial ships after three tankers carrying Indian crew members were attacked during the week. One hit killed three Indian sailors. These were the first deaths reported since the US campaign against Iran-linked shipping began on April 13.
India presses Trump over ship deaths as G7 leaders discuss Iran war
Since the start of the blockade, US forces have disabled eight ships and forced more than 100 others to return. US Secretary of State Marco Rubio spoke on Friday with Indian Foreign Minister Subramaniam Jaishankar about recent events in the Strait of Hormuz. The State Department revealed the call on Saturday.
Trump is expected to ask allies about removing mines from the strait. Britain and France showed interest in helping once the fighting stopped. The waterway carries a large share of global oil shipments, so disruptions could impact fuel prices, financial markets and cryptocurrency trading.
Trump also plans to hold separate meetings with the leaders of Egypt, Qatar and the United Arab Emirates during the summit. Those talks will focus on efforts to end the war with Iran. The US official who described the plans spoke anonymously under White House briefing rules.
Pakistani Prime Minister Shehbaz Sharif said that reaching an agreement to stop the conflict is closer than ever and can be completed within 24 hours. Pakistan is preparing for the electronic signature, followed by technical talks next week.
Iranian Foreign Minister Abbas Araqchi wrote on the X website that the agreement “has never been closer.” Trump shared the post after saying several times that an agreement was close. He said on Thursday that negotiators had made significant progress just hours after threatening to seize control of Iran’s oil industry.
Iranian state television said separately that the funeral ceremony for former Supreme Leader Ayatollah Ali Khamenei will be held in July.
