U.S. President Donald Trump stated on Tuesday that his administration is still in talks to tackle trade obstacles with India and that he would converse with Prime Minister Narendra Modi, increasing optimism for an agreement following weeks of disagreements.
Trump, in a noticeable change of tone, stated he was eager to discuss with Modi in the “coming weeks” and conveyed hope that they might conclude a trade agreement.
“I am confident that we will easily reach a successful outcome for both of our Great Countries,” he stated in a social media post.
Modi echoed the positive sentiment in a social media update on Wednesday, stating that Washington and New Delhi “are close friends and natural allies.”
He mentioned that teams from each country are collaborating to finalize the trade negotiations as soon as possible.
“I am eager to have a conversation with President Trump.” “Modi stated that we will collaborate to ensure a brighter and more prosperous future for our citizens.”
Last week, Trump stated that India had proposed to cut its tariffs on U.S. products to zero, noting that the offer came too late and that the South Asian nation should have decreased its duties long ago.
The U.S. president’s more positive message arrived following months of fluctuating discussions that have tested U.S.-India relations.
India’s main economic adviser this week cautioned that Trump’s 50% tariffs on Indian exports to the U.S. could reduce India’s gross domestic product by half a percentage point this year.
For months, Trump had assured that a trade agreement between the two sides was near, yet he raised new tariffs on Indian imports to 50%, raising doubts about the future of the U.S.-India partnership, which had been reinforced in recent years, even during Trump’s first term.
Trump implemented increased tariffs on India following New Delhi’s refusal to halt purchases of Russian oil, countering his attempts to terminate Moscow’s conflict in Ukraine.
The Financial Times reported on Tuesday that Trump was urging the European Union to apply 100% tariffs on imports from India and China.
In 2024, the two-way goods trade between the U.S. and India reached $129 billion, resulting in a U.S. trade deficit of $45.8 billion, as per data from the U.S
