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US-India trade deal: The key sticking points

DW English · Jun 30, 2026, 5:52 AM · Also reported by 2 other sources

Key takeaways

  • Both India and the US have signaled that the first phase of a landmark trade deal is close.
  • The reasons lie in familiar fault lines in global trade — market access, tariffs and a negotiation where neither side can afford to appear to have blinked first.
  • Relations between Indian Prime Minister Narendra Modi and US President Donald Trump have become strained since they first announced negotiations for a trade deal in February 2025.

Why this matters: an international story with cross-border implications worth tracking.

Both India and the US have signaled that the first phase of a landmark trade deal is close. DW looks at the main challenges in getting a deal past the finish line.

https://p.dw.com/p/5GFZWIndia and the US are very close to finalizing a trade deal that has been in the making ​for ‌months Image: Kevin Lamarque/REUTERSAdvertisement India and the United States have made substantial progress toward signing a landmark bilateral trade agreement, but following multiple rounds of talks there has been no significant breakthrough.

The reasons lie in familiar fault lines in global trade — market access, tariffs and a negotiation where neither side can afford to appear to have blinked first.

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