India and US very close to finalising trade deal, says Trump

Agriculture remains a sticking point in the trade negotiations

While the two sides have been negotiating for months, key sticking points persist, particularly over agricultural access, auto components and tariffs on Indian steel.

For years, Washington has pushed for greater access to Indias farm sector, seeing it as a major untapped market. But India has fiercely protected it, citing food security, livelihoods and interests of millions of small farmers.

Until recently, the US was Indias largest trading partner, with bilateral trade reaching $190bn. Trump and Modi have set a target to more than double this figure to $500bn.

India has already reduced tariffs on a range of goods - including Bourbon whiskey and motorcycles - but the US continues to run a $45bn (£33bn) trade deficit with India, which Trump is keen to reduce.

Meanwhile, Trump has recently renewed his aggressive tariff plans from earlier this year. He has issued warning letters to dozens of countries, signalling his intent to impose steep tariffs starting 1 August.

The list of targeted nations includes all of Americas major trading partners - the European Union, Canada, Mexico, Japan and South Korea.

On Wednesday, in addition to the deal with India, he said the US could possibly make a deal with (the) EU soon.