US President Donald Trump on Tuesday extended warm birthday wishes to Indian Prime Minister Narendra Modi while praising his role in efforts to end Russia’s war in Ukraine, even as tensions over trade threatened to overshadow the goodwill.
In a post on Truth Social, Trump said he had a “wonderful” call with Modi. “Thank you for your support on ending the War between Russia and Ukraine!” he wrote, calling the Indian leader’s efforts “tremendous.”
Relations between Washington and New Delhi have been strained since Trump raised tariffs on most Indian exports to 50% last month. The move came in retaliation for India’s continued purchases of discounted Russian crude, which US officials argue are indirectly financing Moscow’s war in Ukraine.
White House officials have also accused Indian refiners of profiteering from the imports, further fueling trade friction.
Trade talks in New Delhi
Despite the tensions, trade officials from both countries met in New Delhi on Tuesday. The US delegation was led by Brendan Lynch, Assistant Trade Representative for South and Central Asia.
“Acknowledging the enduring importance of bilateral trade between India and the US, the discussions were positive and forward looking covering various aspects of the trade deal,” the Indian commerce ministry said in a statement.
Both sides agreed to intensify efforts for an “early conclusion of a mutually beneficial Trade Agreement.”
Struggles to reach deal
India was among the first countries to launch trade negotiations with Washington but has yet to secure a deal that would ease its tariff burden. Exporters warn that higher US duties are already leading to cancelled orders and potential job losses in India’s manufacturing sector.
Trump’s decision to link tariffs with geopolitics — by doubling duties on Indian goods from 25% to 50% while citing Russian oil imports — has complicated negotiations further.
“Any progress hinges on Washington rolling back the oil-linked 25% duty. Without that, no breakthrough is politically or economically viable,” Ajay Srivastava of the New Delhi-based Global Trade Research Initiative said in a note on Tuesday.
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