Washington: U.S. President Donald Trump announced that his administration is negotiating with India to reduce trade barriers, signaling a shift towards reconciliation after weeks of sharp criticism.
Posting on Truth Social, Trump said he expects to speak with Prime Minister Narendra Modi in the coming weeks, expressing confidence that the discussions will yield a “successful conclusion for both of our Great Countries.” His remarks reflect a softer tone compared to earlier warnings that India and Russia were drifting closer to China following Modi’s meetings with Xi Jinping and Vladimir Putin at the SCO Summit in Tianjin.
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Trump later praised Modi as a “great prime minister,” prompting the Indian leader to thank him and reaffirm his commitment to strengthening U.S.-India ties.
Despite this diplomatic warmth, trade frictions remain high. The U.S. recently doubled tariffs on Indian goods to 50 percent after New Delhi continued oil imports from Russia. India has offered tariff concessions on select American products, but Trump dismissed the move as “too late.”
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India’s Chief Economic Adviser V. Anantha Nageswaran warned the escalated tariffs could shave up to 0.5 percentage points off India’s GDP this year. Bilateral trade in goods reached $129 billion in 2024, with the U.S. posting a $45.8 billion deficit, according to the U.S. Census Bureau.
