Washington (TDI): US President Donald Trump said Tuesday that his administration is pushing ahead with negotiations to ease trade barriers with India and that he plans to speak with Prime Minister Narendra Modi soon, raising hopes of a breakthrough after weeks of strained ties.
In a notable shift of tone, Trump said he expected discussions with Modi “in the coming weeks” and voiced confidence that both countries could close a deal.
“I feel certain there will be no difficulty in reaching a successful conclusion for both of our great nations,” he wrote on social media.
Modi, in a post the following day, echoed the sentiment, calling the United States and India “close friends and natural partners.” He added that negotiators on both sides were working to wrap up talks quickly.
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“I am also looking forward to speaking with President Trump,” Modi said. “Together we will secure a brighter, more prosperous future for our people.”
The leaders’ comments boosted investor sentiment, with Indian shares rising more than 0.5 percent on Wednesday.
For months, Trump had claimed a trade deal with India was within reach, but in June his administration doubled tariffs on Indian imports to 50 percent, fuelling doubts about the trajectory of the relationship. The dispute came as Washington stepped up criticism of New Delhi’s oil purchases from Russia, which US officials argue are indirectly financing the war in Ukraine, an accusation India rejects.
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Tensions also flared as Modi made his first trip to China in seven years to attend a summit hosted by President Xi Jinping, where he was pictured alongside Russian President Vladimir Putin, underscoring New Delhi’s balancing act.
US-India two-way goods trade reached $129 billion in 2024, leaving Washington with a $45.8bn deficit, US Census Bureau data shows. Trump has argued that New Delhi should have cut tariffs years ago and recently claimed India had offered to reduce them to zero.
