Trump, Modi Signal Optimism on US-India Trade Deal Amid Tariff Dispute

WASHINGTON, Sep 10 (Alliance News): US President Donald Trump on Wednesday said his administration was continuing negotiations with India to resolve trade barriers and confirmed he would be speaking with Prime Minister Narendra Modi in the coming weeks, raising hopes of a breakthrough after months of strained talks.

In a social media post, Trump struck a conciliatory tone, saying he was confident of reaching a mutually beneficial agreement. “I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries,” he said.

Prime Minister Modi echoed the sentiment, describing the US and India as “close friends and natural partners.” He said negotiating teams from both sides were working to finalize discussions soon. “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 wrote.

The upbeat messages mark a notable shift from recent weeks of discord, during which Trump doubled tariffs on Indian imports to 50% after New Delhi declined to halt purchases of Russian oil. The decision sparked concerns over the future of the bilateral relationship, which had grown stronger in recent years.

Last week, Trump said India had offered to lower tariffs on US goods to zero, though he criticized the proposal as “too late” and said New Delhi should have reduced duties years ago.

India’s Chief Economic Adviser recently warned that Washington’s higher tariffs on Indian exports could reduce the country’s GDP growth by as much as half a percentage point this year. Meanwhile, the Financial Times reported Tuesday that Trump has been urging the European Union to impose 100% duties on imports from India and China.

Despite the tensions, the United States and India remain significant trading partners. According to US Census Bureau data, two-way goods trade totaled $129 billion in 2024, with Washington posting a $45.8 billion trade deficit with New Delhi.

While uncertainties persist, Wednesday’s remarks from both leaders signal a renewed push to bridge differences and stabilize one of Washington’s most strategically important economic relationships.