President Trump confirmed ongoing negotiations to resolve trade issues with India and expressed confidence in upcoming talks with Prime Minister Modi aimed at reaching a trade agreement, signalling a move towards better relations.
Trump and Modi conveyed optimistic views on trade negotiations through social media, highlighting the strong US-India partnership. Their remarks contributed to a rise in Indian stocks by more than 0.5%.
Following months of trade negotiations, Trump increased tariffs on Indian goods to 50%, creating uncertainty in US-India relations amid disagreements over India’s oil imports from Russia, which New Delhi opposes.
As US-India tensions escalate, India intensifies engagement with China and Russia, highlighted by Modi’s recent summit with Xi Jinping. Analysts caution that despite optimistic remarks, a swift US-India resolution remains unlikely.
Trade officials from the US and India are set to resume in-person negotiations in September after recent disruptions. In 2024, bilateral goods trade amounted to $129 billion, with the US having a $45.8 billion deficit.
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Trump criticised India’s delayed tariff cuts and urged the EU to implement tariffs on China and India as a way to counter Putin.
