Trump, Modi pledge talks to fix trade, tariff impasse

PRime government minister Narendra Modi and US chairman Donald ruff exchanged optimistic statements nearly merchandise negotiations on Wednesday, with both leaders expressing confidence in reaching a successful conclusion while saying they looked forward to speaking to each other.The exchange marked the second positive interaction between the two leaders on social media in four days amid significant strains in bilateral relations over Trump’s decision to double tariffs on Indian goods to 50% following India’s purchases of Russian energy.Modi described India and the US as “close friends and natural partners” in a social media post, stating: “I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership.”“Our teams are working to conclude these discussions at the earliest. 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 added.Modi’s statement came hours after Trump posted on Truth Social that India and the US 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!” Trump wrote.However, the positive rhetoric comes amid contradictory signals from the administration. On September 4, the Trump administration filed an appeal in the US Supreme Court to restore tariffs struck down by lower courts, with the filing explicitly citing India’s Russian oil purchases to justify keeping all tariffs.Soon after Trump’s social media remarks, the Financial Times reported that Trump had asked the European Union on Tuesday to impose tariffs of up to 100% on China and India as part of a joint effort to pressure Russia to end its war in Ukraine.Citing unidentified officials, the report said Trump made the demand when he dialled into a meeting in Washington between senior US and EU officials who had gathered to discuss the next package of European sanctions against Russia.The reasons for the change in Washington’s tone remain unclear, though one person aware of the matter said “all channels were used to achieve this normalisation.” Notably, India’s lobbyist Jason Miller, a former Trump campaign aide, met with the president last week.Even after Trump’s initial outreach last week, senior administration officials continued to target India over Russian oil purchases. National Economic Council director Kevin Hassett stated on Sunday that Washington is looking to increase pressure on Russia through enhanced sanctions, including increased secondary tariffs on countries that purchase Russian energy.White House trade adviser Peter Navarro claimed on Wednesday the US doesn’t need “unfair trade” with India but New Delhi is “desperately” looking for access to the American markets. He also repeated his previous allegations that India is fuelling Russia’s war machinery.“India fuels Russia’s war chest. India is protectionist, with sky-high tariffs. The US runs a massive trade deficit with India,” he said on X. Navarro also claimed that “India’s sky-high tariffs” are costing the US its jobs.On Monday, he had claimed that India’s tariffs are costing American jobs while its Russian oil purchases constitute “profiteering” that funds President Vladimir Putin’s war machine.Trump has not similarly targeted China over Russian oil purchases, having reduced tariffs on Chinese goods in May with a tariff truce currently in effect between the two sides.Analysts welcomed the change in tone while remaining cautious about its durability.“This represents a shift in tone by the President, which in turns sets the tone for negotiations in a more positive direction. However, India is likely to be cautious given that previous such instances of positive rhetoric was followed by sharp downturns,” said Sidharth Raimedhi, a fellow at CSDR, a New Delhi-based think tank.Ajay Srivastava of the Global Trade Research Initiative argued that the administration’s Supreme Court filing undermines prospects for genuine relief. “Removing tariffs now would weaken Trump’s own court case—making any relief for India highly improbable,” he said.“Unless the U.S. Drops these tariffs — which looks unlikely given the Supreme Court case—no trade negotiation can realistically move forward. Trump’s warm words may simply be a tactic to weaken India’s resolve in pursuing multipolar ties with Russia and China,” Srivastava added.While formal trade negotiations between India and the US broke down several weeks ago following the tariff escalation, Indian officials have said both sides remain in touch to advance a bilateral trade deal that the countries had earlier said would be concluded in the autumn.The trade negotiations have also been linked to a planned visit to India by Trump for the Quad Summit, with the members exploring the possibility of holding the summit in November.During their June 17 phone call, Modi told Trump, against the backdrop of Trump’s repeated claims that he had brokered a ceasefire between India and Pakistan in May, that a trade deal had not figured in any discussions between Indian and US sides regarding the hostilities with Pakistan.Modi also clarified that there were no discussions on US mediation to end the hostilities, which stopped at Pakistan’s request after an understanding was reached by Indian and Pakistani militaries through existing channels. Modi made clear that India had not accepted any mediation by a third party in the past or present and would not do so in future.