U.S. and India Renew Push to Resolve Trade Barriers; Trump Eyes Call with PM Modi
In a notable shift in tone, former U.S. President Donald Trump announced on his social media platform that negotiations with India to resolve outstanding trade barriers are officially continuing. His message underscores renewed optimism, with a potential call scheduled with Prime Minister Narendra Modi in the coming weeks.
Trump posted:
“I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!”
India appears to be matching this engagement with active involvement. Finance Minister Nirmala Sitharaman confirmed that India’s diplomatic team is fully engaged in ongoing talks aimed at strengthening economic relations.
This announcement comes amid a tense backdrop. The U.S. imposed steep tariffs—initially 25%, later doubling to 50%—on Indian imports, particularly penalizing New Delhi’s continued oil purchases from Russia. Analysts have warned the tariffs could shave off nearly half a percentage point from India’s GDP this year.
Why This Matters
Economic Stakes: In 2024, U.S.–India goods trade reached $129 billion, with the U.S. running a trade deficit of $45.8 billion.
Domestic Pressures: India considers sectors such as agriculture and dairy as sensitive “red lines” in trade talks. Finance Minister Sitharaman emphasized these areas require careful handling during negotiations.
Industry Appeals: The U.S.–India Business Council urged both governments to pursue respectful, private dialogue to preserve decades of economic cooperation.
What Could Happen Next
High-Level Talks: Trump’s upcoming call with PM Modi may pave the way for substantive discussions toward reducing trade barriers.
Sector-Specific Agreements: While aiming for a broad resolution, sensitive areas like agriculture and dairy may see tailored terms reflective of domestic priorities.
Strategic Realignment: Both sides face pressure to not derail strategic ties—even as economic friction persists.
Key Facts at a Glance
Topic Detail
Announcement Trump confirmed continued negotiations and a planned conversation with PM Modi.
Reason for Tariffs Tariffs imposed due to India’s persistent purchase of Russian oil.
Economic Scope 2024 trade totaled $129 billion, with U.S. facing a $45.8 billion deficit.
India’s Red Lines Agriculture and dairy remain non-negotiable sectors for India.
Industry View USIBC encouraged dialogue to prevent further damage to U.S.-India ties.
This development marks a potential de-escalation in U.S.–India trade tensions—but much depends on the substance of upcoming discussions and each side’s willingness to compromise. We’ll continue tracking updates as the dialogue progresses.
