Trump, Modi Signal Progress Toward US-India Trade Deal Amid Diplomatic Tensions
Washington/New Delhi: US President Donald Trump has indicated that negotiations with India to resolve trade barriers are moving forward, raising hopes of a potential trade agreement after weeks of diplomatic friction.
Speaking on Tuesday, Trump said he expected to hold talks with Indian Prime Minister Narendra Modi in the coming weeks and expressed confidence about reaching an agreement.
“I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries,” Trump posted on social media.
Modi echoed similar optimism in his own post on Wednesday, describing the United States and India as “close friends and natural partners.” He added that trade teams from both sides were working hard to conclude 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.
Market Reaction
The latest positive signals from both leaders lifted Indian stock markets, with shares climbing over 0.5% on Wednesday.
Trade Disputes in Focus
Trump has previously claimed a deal was near, but bilateral ties faced setbacks after the US doubled tariffs on Indian imports to 50%, raising concerns about future relations.
The two countries have also clashed in recent months over India’s purchase of Russian oil. US officials accused New Delhi of indirectly funding the war in Ukraine — a claim India strongly denies.
Adding to the complexities, Modi’s recent visit to China for a summit hosted by President Xi Jinping, where he was also seen alongside Russian President Vladimir Putin, signaled India’s evolving diplomatic balancing act.
Analysts Urge Caution
While Trump and Modi’s remarks suggest a thaw in relations, analysts remain cautious.
“With Trump, we will need to wait for more concrete signals that a deal is in the offing,” said Madhavi Arora, economist at Emkay Global.
Trade Talks to Resume
According to media reports, trade officials from both nations are likely to restart in-person talks in September. A previous round of discussions planned for August in New Delhi was cancelled after disagreements stalled progress.
India’s trade ministry has declined to comment on the reported new meetings.
By the Numbers
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US-India goods trade (2024): $129 billion
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US trade deficit with India: $45.8 billion (US Census Bureau)
Trump has also claimed that India offered to reduce tariffs on US goods to zero, but argued that the move came too late. Meanwhile, the Financial Times reported that Trump has been pressing the European Union to impose 100% duties on imports from both India and China.
Outlook
Although signals from both Trump and Modi point to improved relations, experts caution that a breakthrough is not guaranteed. The next round of talks will be crucial in determining whether the two nations can move past recent tensions toward a long-term trade partnership.
