Economy June 17, 2026 11:14 AM

Trump Says U.S. and India Near Interim Trade Accord After G7 Talks; Calls Modi 'Very Tough'

Leaders meet in France as defence, maritime security and stalled tariff measures linger on the agenda

By Hana Yamamoto
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U.S. President Donald Trump said he and Indian Prime Minister Narendra Modi are close to finalizing a long-awaited interim trade agreement following a face-to-face meeting at the Group of Seven summit in France. The exchange included frank comments on Modi's negotiating style, discussions about maritime security after a deadly attack on Indian-crewed vessels, and reassurances on defense cooperation. Negotiators continue talks after delays prompted by a U.S. Supreme Court ruling on reciprocal tariffs.

Trump Says U.S. and India Near Interim Trade Accord After G7 Talks; Calls Modi 'Very Tough'
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Key Points

  • U.S. President Donald Trump said he and Indian Prime Minister Narendra Modi are close to finalizing an interim trade pact after meeting at the G7 summit in France.
  • Modi and Trump discussed maritime security following a U.S. attack on Indian-crewed vessels in the Gulf of Oman that killed at least three sailors; Modi emphasized the importance of seafarer safety and freedom of navigation.
  • The interim trade deal agreed in February was delayed after a U.S. Supreme Court ruling struck down reciprocal tariffs; under the proposed arrangement Indian exports would face an 18% tariff versus the 50% announced last year.

U.S. President Donald Trump told reporters on Wednesday that negotiators from Washington and New Delhi are nearing completion of an interim trade agreement after discussions with Indian Prime Minister Narendra Modi at the Group of Seven summit in France.

Asked about the status of the talks, Trump said the two sides were close to a deal and complimented Modi's negotiating rigor. "We've been there for a little while and he's a very tough negotiator, one of the toughest, actually," the president said. He described Modi as a longtime friend and added, "while Modi looks like an angel, but actually, he's as tough as a killer."

Trump also said he planned to visit India at some point, though he did not provide a timing for the trip.

The meeting in France marked the first in-person conversation between the leaders since Modi's visit to the White House early last year. The two countries have been working to mend frayed ties after a period of tension tied to U.S. tariff policy, Pakistan and the war in Iran.

Maritime security emerged as a point of concern during the exchange. The meeting followed a recent U.S. attack on Indian-crewed vessels in the Gulf of Oman region that killed at least three sailors and generated criticism from India. According to the account provided during the talks, the ships were targeted as part of a U.S. blockade of vessels sailing to and from Iranian ports.

Prime Minister Modi raised the matter directly during remarks to Trump at a joint press briefing. "We have always said that freedom of navigation should be ensured," he said. Modi noted the scale of India's maritime workforce, saying thousands of Indian seafarers operate "on the world's seas in the maritime trade sector" and that their security is important. He expressed confidence that the security of seafarers would be "ensured and prioritized" as part of the U.S.-Iran peace deal.

On defense cooperation, Trump framed the relationship as strong and pledged U.S. support in the event India is attacked. "If they were attacked, we would be there to help them," he said. Pointing to Modi, the president added, "If anybody attacks that man, we're going to be there," while qualifying that commitment with a remark about leadership change: "but if there's a new leader, I'm not sure about that."

On trade specifics, the United States and India are working toward finalizing an interim pact that was agreed in February. That agreement had been due to be signed in March but was delayed after a U.S. Supreme Court ruling struck down the administration's reciprocal tariffs. Under the proposed interim arrangement, Indian exports to the U.S. would face an 18% tariff, down from the 50% rate announced last year.

Negotiators from both countries have continued to meet since March. The article's account notes two formal negotiation rounds since then, including talks in Washington in April and a four-day session in New Delhi earlier this month. U.S. Trade Representative Jamieson Greer is scheduled to travel to India later this month to advance the negotiations.


Key takeaways

  • U.S. and India report progress toward an interim trade agreement, with leaders meeting at the G7 summit in France.
  • Maritime security and the recent deadly attack on Indian-crewed vessels in the Gulf of Oman were raised as immediate concerns.
  • Defense assurances were reiterated, and negotiators plan further talks including an upcoming visit by U.S. Trade Representative Jamieson Greer.

Context for markets and sectors

  • Trade developments affect export-oriented sectors and tariff-exposed industries.
  • Maritime and shipping security concerns have implications for global trade logistics and insurers.

Risks

  • Maritime security incidents, such as the attack on Indian-crewed vessels, could strain bilateral relations and disrupt shipping-dependent sectors.
  • Legal and political hurdles remain - the U.S. Supreme Court ruling that invalidated reciprocal tariffs previously delayed the pact, introducing uncertainty for tariff-exposed exporters and importers.
  • Political leadership changes could affect defense commitments and bilateral assurances, creating uncertainty for defense and geopolitical risk assessments.

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