US and India close to finalising trade pact, say Trump and Rubio

Trade Deal Progress

United States President Donald Trump said that India and the U.S. are pretty close to making a trade deal that will be much different than earlier pacts. Speaking at the Oval Office on Tuesday, October 20, 2026, Mr. Trump noted that both sides want to make a deal. Visiting U.S. Secretary of State Marco Rubio separately told The Indian Express that the agreement is weeks rather than months away, with ninety-nine percent of the work finished.

Official Visits and Talks

Mr. Trump's comments followed discussions held by Mr. Rubio in India regarding trade, energy, technology, defence, and people-to-people ties. Earlier this month, Commerce Minister Piyush Goyal met U.S. Trade Representative Jamieson Greer in Milwaukee and Washington to discuss the finer details of the pact. The two countries announced a first-phase framework in February, but changes in the U.S. tariff landscape led to further negotiations.

Tariffs and Visas

Addressing concerns about recent policies, Mr. Rubio stated that U.S. tariffs are not meant to punish India and that visa restrictions are not targeted at the country. He explained that current visa rules aim to fix twenty years of neglect in the immigration system. On Russian oil imports, Mr. Rubio acknowledged that tariff issues must be carefully managed.

Context

Bilateral trade agreements require extensive negotiations between nations to align domestic economic laws, tariff structures, and market access rules. The U.S. and India maintain a broad strategic partnership spanning defence, energy, and commerce, regularly engaging through high-level ministerial meetings to resolve differences.