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Hinting at a possible easing of trade tensions, US President Donald Trump said India and America are “continuing negotiations to address the trade barriers”, and that he was “certain” there would be “no difficulty” in the talks being successful. Responding hours later, Prime Minister Narendra Modi said both countries are “natural partners” and will “work together to secure a brighter, more prosperous future”.
Trump’s remarks, in a social media post, signalled a shift in tone after weeks of the US President and his top officials berating India on the topic after imposing 50 per cent tariffs on Indian products, hitting exporters who expressed fears of job losses. They also come days after Modi’s warm and prompt response to Trump’s statement that both countries have a “special relationship”.
Trump also indicated Wednesday that he was looking forward to speaking with his “very good friend” Modi in the coming weeks, raising hopes of a possible visit to the US or a call to the President by the PM. A visit was being planned around the UN General Assembly on September 26, but now External Affairs Minister S Jaishankar has been designated to address the gathering a day later.
In a Truth Social post, Trump said, “I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!”
Modi responded on X: “India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest. I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people.”
New Delhi is reading the latest exchange as a “positive incremental step forward”, but is cautious since the US President has reportedly asked the EU to impose tariffs of up to 100 percent on China and India for their procurement of Russian crude oil.
Sources said the possibility of high-level visits by senior officials on trade and defence are expected in the coming days. “The discussions on trade and defence equipment are expected to pick up pace in the coming days, and high-level visits cannot be ruled out at this stage,” a source said.
Since the India-US bilateral chill set in on August 6, when Trump imposed an additional 25% tariff as a penalty for India’s purchase of Russian oil, the first tentative sign of a possible thaw came on September 6.
In a turn that has, of late, come to characterise the policy see-saw in the White House, Trump said Friday in the Oval Office that India and the US have a “special relationship” and “there is nothing to worry about.” Responding swiftly, Modi said he “deeply” appreciated and “fully” reciprocated “President Trump’s sentiments and positive assessment of bilateral ties.”
Modi’s statement was his first direct response on the issue since Trump announced his global tariff regime and marked the first political effort at the highest level in New Delhi to try and reverse the downward spiral into which India-US ties have fallen.
Yet, sources said, fingers remain crossed given the flip-flops and public outbursts that have come to mark the Trump White House. On Wednesday, White House Trade advisor Peter Navarro said, “The US doesn’t need unfair trade with India. But India desperately needs access to US markets and schools and intends to continue taking U.S. Jobs. India fuels Russia’s war chest. India is protectionist, with sky-high tariffs. The US runs a massive trade deficit with India.”
In this context, the latest Trump-Modi exchange has brought some relief to an establishment that was trying to work out a strategy to break the ice. Trump’s remarks are being seen as off-ramp and Delhi, waiting for an opportunity where the President Trump would dial back a little bit, took the chance. Using his own handle on X and tagging both Trump and POTUS, Modi had thrown his weight behind this move.
Meanwhile, the US Supreme Court has granted the administration’s request to hear its appeal of lower court rulings that many of President Trump’s wide-ranging tariffs imposed using the International Emergency Economic Powers Act (IEEPA) are illegal. The court said it would hear oral arguments in the first week of November.
The lower court’s ruling affects the 25 per cent reciprocal tariffs imposed by the US on India, as well as the additional 25 per cent tariffs on imports of Russian oil, as Trump announced these under IEEPA. However, sectoral tariffs such as the 50 per cent duty on steel and aluminium, where Trump has used Section 232 of the Trade Expansion Act of 1962, face no legal challenges.
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