India-US trade talks are back in focus after President Donald Trump said on Tuesday that his administration is actively negotiating to remove trade barriers with India. Fueling hopes of a deal after weeks of uncertainty, Trump added that he expects to speak with Prime Minister Narendra Modi in the coming weeks.
In a clear shift of tone, Trump said he was confident the two sides could reach an agreement. “I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries,” he said in a social media post.
Prime Minister Modi reciprocate the sentiment on Wednesday, calling Washington and New Delhi “ close friends and natural partners.” He confirmed that teams from both sides were working to wrap up the talks quickly. “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 said.
Trump recently claimed that India had offered to reduce its tariffs on US goods to zero, though he criticized New Delhi for not doing so earlier. The latest positive signals come after months of back-and-forth negotiations that had strained ties.
India chief economic adviser warned earlier this week that Trump move to impose 50% tariffs on Indian exports could cut as much as half a percentage point from India GDP this year.
READ MORE: Trump Imposes 10% Tariffs on India Over BRICS Tensions
Although Trump had long suggested a deal was close, he instead doubled tariffs on Indian imports which sparked doubts over the future of the partnership. The higher tariffs followed India refusal to halt Russian oil purchases, which clashed with Washington pressure campaign against Moscow.
Meanwhile, reports also suggested that Trump is also urging the European Union to impose 100% tariffs on imports from India and China.
According to US Census Bureau data, two-way goods trade between the US and India reached $129 billion in 2024, leaving Washington with a $45.8 billion trade deficit.
