US President Donald Trump said on Wednesday that his administration is continuing negotiations with India to reduce trade barriers and announced he will speak with Prime Minister Narendra Modi in the coming weeks.
In a marked shift of tone, Trump expressed confidence that the two countries could finalize a trade deal.
“I am pleased to announce that India and the United States are continuing negotiations to address the trade barriers between our two nations,” Trump said in a social media post.
“I feel certain that there will be no difficulty in coming to a successful conclusion for both of our great countries,” he added, calling Modi “a very good friend.”
Modi welcomes Trump’s remarks
Prime Minister Modi responded a day later, describing Washington and New Delhi as “close friends and natural partners.”
“Our teams are working to conclude the trade discussions at the earliest,” Modi posted on social media.
“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,” he said.
Trade tensions in recent months
The conciliatory tone follows a turbulent period in US-India trade relations. Trump recently said India had offered to reduce tariffs on American goods to zero, but called the proposal “too late,” insisting New Delhi should have lowered its duties years ago.
Tensions escalated when Trump doubled tariffs on Indian imports to 50% after India refused to stop buying Russian oil, a move that sparked concern about the durability of the partnership.
India’s chief economic adviser warned this week that the US tariffs could shave 0.5% off the country’s GDP in 2025.
The Financial Times reported that Trump is also pressing the European Union to impose 100% duties on imports from India and China, underscoring Washington’s tougher stance on trade.
Despite the disputes, US-India goods trade remained strong in 2024, totaling $129 billion, with the US running a $45.8 billion deficit, according to Census Bureau data.
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