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Trump And Modi Restart Trade Talks After 16 Months Apart

Published Jun 19, 2026
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Summary:
  • Trump and Modi met on the sidelines of the G7 summit on June 17, their first one-on-one talks in 16 months.
  • Both leaders told their teams to finish an interim trade deal soon, and US trade envoy Jamieson Greer visits India next week.
  • The reset follows a year of friction over US tariffs, higher H-1B visa fees, and a disputed claim about the May 2025 India-Pakistan ceasefire.

A year ago, the US and India were trading jabs. The fights were over tariffs, visa fees, and a border clash.

This week they traded compliments. The two leaders met for the first time in 16 months, then told their teams to finish a trade deal.

The Meeting

The two met at the G7 summit in France. India's government said both sides made real progress on an interim trade deal.

That matters because ties had cooled for a year. Both leaders told their staff to close a fair deal soon.

Officials have already held several rounds of talks on it. Greer's visit next week is meant to push them over the line.

Modi pointed back to their last sit-down, in Washington in early 2025. He said it gave the bond fresh energy.

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What The Two Sides Want

The deal is just one piece. The leaders also checked on a wider plan they launched in early 2025.

That plan, called COMPACT, ties the two countries together on defense, energy, tech, and trade. Both sides said it has moved forward since then.

Modi also raised the safety of Indian sailors at sea. He pushed for open shipping lanes and protected crews.

He praised Trump's push for peace in the Middle East, too. The warm words were a clear effort to reset the tone.

Why The Mood Had Soured

The friendly tone marks a real turn. Ties had cooled after the US put tariffs on Indian goods and raised H-1B visa fees, which hit Indian tech workers hard.

The visa fee hike stung the most. It raised the cost of the work visas many Indian engineers use to take US jobs.

It also got personal. Trump said more than once that he helped calm the India-Pakistan clashes in May 2025.

India rejected that. New Delhi said it settled things on its own, with no US role.

India Is Still Playing It Safe

For all the smiles, India did not show up as a pushover. Modi pressed on issues of its own.

He asked for safe passage through the Strait of Hormuz. That narrow sea lane carries a big share of the world's oil.

The ask came for a reason. A recent US strike in the Gulf of Oman killed three Indian sailors.

Think of it like dinner with someone you just argued with. You show up and stay polite, but you keep your guard up.

What To Watch

Greer's trip next week is the real test. Warm words are cheap at a summit, and a signed deal is the hard part.

The summit gave both sides the handshake, but next week's talks decide whether it becomes a deal.

If you want the market's read on stories like this every morning, join the investors reading Market Briefs and get a 45-minute investing course thrown in as a bonus.

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