US President Donald Trump announced on Tuesday that his administration is pushing forward with negotiations to resolve trade disputes with India, indicating he expects to speak with Prime Minister Narendra Modi in the coming weeks. The comments mark a notable shift in tone after recent diplomatic tensions between the two nations.
In a social media post, Trump expressed confidence that the two countries would reach a mutually beneficial agreement, stating, “I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries.”
Modi responded positively on Wednesday, describing the US and India as “close friends and natural partners” and confirming that both sides are working to finalize trade discussions. He added that he looks forward to speaking with Trump to help secure “a brighter, more prosperous future for both our people.”
The optimistic statements helped lift Indian shares by more than half a percent.
Trade relations between the two countries have been strained in recent months. After repeatedly suggesting a deal was near, Trump abruptly doubled tariffs on Indian imports to 50%, raising concerns about the future of US-India ties. American officials have also criticized India’s continued purchase of Russian oil, accusing it of indirectly funding the war in Ukraine—a claim India denies.
Amid these tensions, Modi recently visited China for the first time in seven years, attending a summit hosted by Chinese President Xi Jinping and appearing alongside Russian President Vladimir Putin.
Economists remain cautious despite the leaders’ upbeat remarks. Madhavi Arora of Emkay Global noted that while the statements suggest a possible reconciliation, it is too early to assume a swift resolution. “With Trump, we will need to wait for more concrete signals that a deal is in the offing,” she said.
Trade officials from both countries are expected to schedule in-person meetings this month to restart negotiations, according to sources cited by CNBC-TV18. A previous round of talks scheduled for late August was canceled amid disagreements.
US-India bilateral goods trade reached $129 billion in 2024, with the US recording a trade deficit of $45.8 billion. Trump claimed last week that India had offered to eliminate tariffs on US goods, though he described the proposal as long overdue.
The Financial Times reported that Trump is also urging the European Union to impose 100% tariffs on imports from India and China, reflecting his broader protectionist trade agenda.
