In a notable shift in tone, President Donald Trump expressed optimism about finalizing a trade deal with India, stating he looks forward to speaking with Prime Minister Modi in the “upcoming weeks.” In a social media post, Trump said, “I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries.”
Prime Minister Modi reciprocated the positive sentiment in his own post on Wednesday, calling Washington and New Delhi “close friends and natural partners.” He noted that teams from both countries are working to conclude trade discussions as soon as possible and that he is also looking forward to speaking with Trump. “We will work together to secure a brighter, more prosperous future for both our people,” Modi added. These recent comments from both leaders caused India’s shares to rise by over 0.5 percent.
The new dialogue follows a period of heightened tension. For months, Trump had promised a trade deal was near, only to double new tariffs on Indian imports to 50%, raising questions about the future of the U.S.-India relationship. In recent weeks, Trump and his officials have also criticized India for buying oil from Russia, a charge New Delhi denies, claiming that India is funding the war in Ukraine.
This diplomatic friction with the U.S. has coincided with India’s efforts to strengthen ties with China. Last month, Modi made his first visit to China in seven years for a summit hosted by President Xi Jinping and was seen holding hands with Russian President Vladimir Putin.
Despite the recent positive statements, Madhavi Arora, an economist at Emkay Global, cautioned that a swift resolution is not guaranteed. “With Trump, we will need to wait for more concrete signals that a deal is in the offing,” she said.
Trade Talks to Resume
According to a report by CNBC-TV18, Indian and U.S. trade officials are likely to plan visits to restart in-person trade talks in September. A previously planned visit by U.S. trade negotiators to New Delhi from August 25-29 was cancelled after talks hit major roadblocks. India’s trade ministry declined to comment on the report of a new round of meetings.
U.S. Census Bureau data shows that two-way goods trade between the U.S. and India totaled $129 billion in 2024, with a $45.8 billion trade deficit for the U.S. Last week, Trump claimed that India had offered to reduce its tariffs on U.S. goods to zero, adding that the proposal was too late and the country should have lowered its duties years ago. The Financial Times also reported on Tuesday that Trump was pushing the European Union to impose 100% duties on imports from India and China.
