On Tuesday, US President Donald Trump announced that his administration is actively engaged in negotiations to overcome trade barriers with India. He mentioned plans to discuss these issues with Prime Minister Narendra Modi, sparking optimism for a potential agreement after a period of tension. Trump, adopting a more positive tone, expressed his eagerness to converse with Modi in the “upcoming weeks” and shared his hope for finalizing a trade deal. “I am confident that reaching a successful conclusion for both of our Great Countries will be smooth,” he posted on social media.
Prime Minister Modi echoed this optimism on Wednesday via social media, highlighting the strong friendship and natural partnership between Washington and New Delhi.
Modi noted that teams from both nations are striving to wrap up the trade discussions promptly.
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“I am also eager to speak with President Trump. Together, we will work to ensure a brighter, more prosperous future for our people,” Modi stated.
Last week, Trump remarked that India had proposed to eliminate tariffs on US goods, though he criticized the timing, stating that India should have reduced these duties much earlier.
The US President’s optimistic remarks follow months of challenging negotiations that have tested US-India relations. India’s chief economic advisor recently cautioned that Trump’s 50 percent tariffs on Indian exports could reduce India’s GDP growth by half a percentage point this year.
For months, Trump had assured that a trade deal was near, only to later increase tariffs on Indian imports to 50%, raising concerns about the US-India relationship, which had been strengthening in recent years, including during Trump’s first term. Trump increased tariffs after India continued purchasing Russian oil, defying his pressure to curb Moscow’s war in Ukraine.
The Financial Times reported on Tuesday that Trump urged the European Union to set 100 percent duties on imports from India and China.
In 2024, US-India bilateral trade in goods reached $129 billion, with the US facing a $45.8 billion trade deficit, as per US Census Bureau data.
