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India-US Trade Talks: Trump Strikes Optimistic Tone, Modi Responds in Kind

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United States President Donald Trump offered a strikingly conciliatory message this week on trade relations with India, after months of turbulence marked by new tariffs and sharp rhetoric.

In a post on his social media platform Truth Social, Trump said negotiations were ongoing to address “trade barriers” between the two countries.

He added that he looked forward to speaking with Prime Minister Narendra Modi “in the upcoming weeks,” expressing confidence that “there will be no difficulty in coming to a successful conclusion for both of our great countries.”

This softer tone comes just weeks after Washington imposed steep tariffs on Indian goods raising duties to 50 percent, with an additional penalty linked to India’s continued purchases of Russian oil. Those moves had drawn alarm in New Delhi, where officials warned that the tariffs could shave as much as half a percentage point off India’s GDP this year.

Yet, even amid such tensions, Trump has repeatedly called Modi “a great Prime Minister” and insisted the two share a “very special relationship.” He has also made clear, however, that he “does not like what Modi is doing at this particular moment,” an apparent reference to India’s refusal to scale back oil imports from Moscow.

US President Donald Trump (L) shakes hands with India's Prime Minister Narendra Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020.
US President Donald Trump (L) shakes hands with India’s Prime Minister Narendra Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020.(HT_PRINT)

For his part, Prime Minister Modi responded warmly to Trump’s remarks, posting on X that he “deeply appreciates and fully reciprocates” the U.S. President’s sentiments. Modi described the relationship as “forward-looking” and anchored in a “Comprehensive and Global Strategic Partnership.”

The backdrop to these exchanges is larger than just bilateral trade. According to reports, Trump has also been urging European allies to impose sweeping tariffs up to 100 percent on both China and India, countries that have become vital lifelines for Russia’s embattled economy since the invasion of Ukraine in 2022.

U.S.-India goods trade reached $129 billion in 2024, but the United States ran a $45.8 billion deficit, a persistent concern for Washington. Trump has suggested that India recently offered to reduce tariffs on U.S. imports to zero, though he complained that such a step should have been taken years earlier.

The relationship between the two democracies has often been described as one of the most important in the world. But it is also one prone to friction as India seeks strategic autonomy while the United States attempts to rally allies against Russia and China. The coming weeks and the proposed Trump-Modi conversation will be an important test of whether this “very special relationship” can withstand the economic and geopolitical pressures of the moment.

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