Trump and Modi Signal Thaw in Trade Talks Amid Lingering Tariffs

US President Donald Trump recently announced that the U.S. and India are continuing trade negotiations to address existing barriers. This marks a shift in tone after a period of strained relations.

Here’s a breakdown of the key developments:

Trade Negotiations and Shifting Tones

On Wednesday, September 10, President Trump stated on Truth Social that he was “pleased” with the ongoing talks and looked forward to speaking with his “very good friend,” Prime Minister Narendra Modi. He expressed confidence that the two nations would reach a successful conclusion.

Prime Minister Modi responded positively on X, affirming that India and the U.S. are “natural partners and close friends.” He said the negotiations would unlock the “limitless potential” of their partnership. This public exchange follows a weekend where both leaders used similar language to describe their “special” and “forward-looking” relationship.

Underlying Tensions and Contradictions

These recent remarks come amid significant trade tensions. The Trump administration previously imposed an additional 25% tariff on Indian exports, bringing the total tariff to a high of 50%. This action was taken to penalize India for its continued purchase of Russian oil, which the U.S. claims helps fund the war in Ukraine. The tariffs have hit key Indian sectors like textiles, gems, jewelry, and seafood.

The seemingly positive outlook from Trump also contradicts other White House officials. White House trade advisor Peter Navarro has been a vocal critic of India’s stance on Russia, while Commerce Secretary Howard Lutnick has suggested that India will need to “say sorry to President Trump” at the negotiation table.

Expert Analysis

Former foreign secretary Nirupama Rao described the exchange between Trump and Modi as an “opening gambit” rather than a full reset of the India-U.S. relationship. She highlighted the need for India to “frontload the optics and backload the substance,” suggesting that while the public messaging is positive, the underlying policy differences still need to be addressed.

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