US President Donald Trump said on October 20 that India and the United States were “pretty close” to a trade agreement after more than a year of negotiations. His remarks came as US Secretary of State Marco Rubio met External Affairs Minister S. Jaishankar in Mumbai and said only a small number of issues remained unresolved. 

Trump Signals Progress, but Gives No Signing Date

Speaking at the White House, Trump said both countries wanted a deal and suggested it would be “a much different kind of deal” from previous US trade agreements. He did not explain how it might differ or announce when it could be signed. The comments followed renewed negotiations after changes to US tariff policy complicated efforts to finalize the agreement.

Rubio Says a Few Issues Remain

During his Mumbai meeting with Jaishankar, Rubio said the two countries were “very, very close” to completing the agreement. He said a small number of items remained to be resolved and expected progress “shortly.” Jaishankar said their discussions covered trade, energy, technology and defence. Rubio’s remarks signal diplomatic optimism, but officials have not confirmed a signing timetable.

February Framework Set Out an 18% Tariff Rate

In February 2026, India and the US announced a framework for an interim trade agreement. Under the framework, the US would apply an 18% reciprocal tariff to specified Indian goods, with possible removal of that tariff on certain products if the interim agreement is successfully concluded. The framework also outlined proposed market-access commitments. 

Later changes in US tariff policy led to further talks over the final terms. Earlier in October, Commerce Minister Piyush Goyal met US Trade Representative Jamieson Greer in Milwaukee and Washington. Goyal said the first phase was in its final legal-drafting stage. India has sought tariff treatment that keeps its exporters competitive with rivals such as Vietnam. 

When Could the India-US Trade Deal Be Signed?

US Ambassador Sergio Gor and Jaishankar have also indicated progress, but neither government has released the final text or confirmed a signing date. Any agreement’s effects will depend on its final tariff rates, market-access provisions and implementation rules.