U.S.-India trade deal hits G7 stage with a new 12.5% tariff threat hanging over talks

A fresh 12.5% tariff threat hangs over U.S.-India trade talks as Donald Trump prepares to meet Indian Prime Minister Narendra Modi at the G7 summit in France. The two leaders will discuss the deal, but Washington does not expect signatures during the gathering.

Negotiations will continue after the summit, when U.S. Trade Representative Jamieson Greer travels to India for another session.

The summit will run from June 15 to June 17 in Evian-les-Bains. Trump will attend with leaders from major industrial economies, while India will send a high-level delegation. A U.S. official allegedly said Modi wants a larger global role for India and considers close ties with Washington part of that goal.

According to Reuters, the official said Trump will accept only terms he considers strong, adding, “We think a very good deal is possible.”

Trump and Modi review tariff demands before Greer continues talks in India

The G7 meeting will not produce any conclusive deal on trade. Trump and Modi will be able to gauge where negotiations currently stand before the delegation starts discussing issues such as tariffs and market access again. The subsequent trip of Greer in the following week will push the process towards another stage.

India wishes for reduced tariffs and favorable treatment according to the preliminary deal. According to Piyush Goyal, India’s commerce minister, the initial phase of the bilateral deal would likely be completed by mid-July. That gives both countries just a few more weeks to solve the rest of their differences.

Relations have faced pressure for two reasons. Washington imposed tariffs on Indian products, and Trump repeatedly said he helped end last year’s brief fighting between India and Pakistan. New Delhi rejects that account. The tone has become less hostile in recent weeks, allowing officials to keep negotiating.

The leaders are also expected to discuss energy security. Indian officials said possible purchases of Venezuelan oil may come up. That topic now sits beside another urgent problem involving ships, tankers, and the Strait of Hormuz.

India demanded on Thursday that the United States stop attacking commercial shipping after three tankers carrying Indian crew members were hit during the week. One strike killed three Indian sailors. They were the first reported deaths since the U.S. campaign against Iran-linked shipping began on April 13.

India presses Trump on shipping deaths as G7 leaders discuss the Iran war

Since the blockade started, U.S. forces have disabled eight vessels and forced more than 100 others to turn back. U.S. Secretary of State Marco Rubio spoke Friday with Indian Foreign Minister Subrahmanyam Jaishankar about the latest events in the Strait of Hormuz. The State Department disclosed the call Saturday.

Trump is expected to ask allies about clearing mines from the strait. Britain and France have shown interest in helping once the fighting pauses. The waterway carries a large share of global oil cargoes, so disruptions can affect fuel prices, financial markets, and crypto trading.

Trump also plans 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 Iran war. The U.S. official who described the plans spoke anonymously under White House briefing rules.

Pakistan’s Prime Minister Shehbaz Sharif said an agreement to stop the conflict was closer than “ever before” and could be completed within 24 hours. Pakistan was preparing for an electronic signing, followed by technical talks next week.

Iranian Foreign Minister Abbas Araghchi wrote on X that an agreement “has never been closer.” Trump shared the post after saying several times that a deal was near. On Thursday, he said negotiators had made major progress only hours after threatening to take control of Iran’s oil industry.

Iranian state television separately said funeral ceremonies for former Supreme Leader Ayatollah Ali Khamenei will take place in July.