WASHINGTON/NEW DELHI: US President Donald Trump said on Tuesday his administration is continuing negotiations to address trade barriers with India and that he would talk to Prime Minister Narendra Modi, in a sign a deal may be imminent after weeks of diplomatic friction.
Trump, in a marked shift of tone, said he looked forward to speaking to Modi in the “upcoming weeks” and expressed optimism that they could finalize a trade deal.
“I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries,” he said in a post on social media.
Modi reciprocated the optimism in a social media post on Wednesday, saying Washington and New Delhi “are close friends and natural partners.”
He said teams from both countries are working to conclude the trade 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,” Modi said.
The latest comments from both the leaders drove India’s shares up over 0.5%.
Trump had promised for months that the two sides were close to clinching a trade deal, only to double new tariffs on Indian imports to 50%, sparking questions about the future of the U.S.-India relationship, which had strengthened in recent years, including during Trump’s first term.
Over the past few weeks, Trump and his top officials have criticised India for buying oil from Russia and said that India was funding the war in Ukraine, a charge New Delhi denies.
The diplomatic friction with the U.S. has coincided with India warming up to China. Late last month Modi made his first visit to China in seven years for a summit hosted by Chinese President Xi Jinping and was seen holding hands with Russian President Vladimir Putin.
“While the social media statements by Trump and Modi signal a potential rapprochement between the US and India, it is still premature to assume that a resolution will arrive swiftly,” Madhavi Arora, economist at Emkay Global said.
She said “with Trump, we will need to wait for more concrete signals that a deal is in the offing.”
Meetings to start
Indian and U.S. trade officials are likely to plan visits to restart in-person trade talks in September, CNBC-TV18 reported citing sources.
A planned visit by US trade negotiators to New Delhi from August 25-29 was canceled, after trade talks hit major road blocks.
India’s trade ministry declined to comment on the report of a new round of meetings between trade negotiators.
U.S.-India two-way goods trade totaled $129 billion in 2024, with a $45.8 billion U.S. trade deficit, according to U.S. Census Bureau data.
Trump says India offered to reduce tariffs on US goods to zero
Trump last week said India had offered to reduce its tariffs on U.S. goods to zero, adding that the proposal was late and the South Asian country should have lowered its duties years ago.
The Financial Times reported on Tuesday that Trump was pressing the European Union to impose 100% duties on imports from India and China.
American Dollar Exchange Rate