Trade Talk Update: US–India Relations Find New Momentum After Tensions

Trade Talk Update: US–India Relations Find New Momentum After Tensions

United States: President Donald Trump and Indian Prime Minister Narendra Modi have moved to ease weeks of tension between their countries by reopening stalled trade talks.

In a late-night post on Truth Social, Trump said he was “pleased to announce” that the US and India were resuming negotiations and praised Modi as a “very good friend.” He added that the two leaders would speak in the coming weeks and expressed confidence that the talks would “reach a successful conclusion for both of our Great Countries.”

Modi echoed the sentiment in a post on X, calling the US and India “close friends and natural partners.” He said he expected the negotiations to unlock the “limitless potential” of the partnership and promised that both governments would work quickly to reach a deal.

The public show of unity comes after weeks of escalating tensions. Just last week, Trump asked the European Union to consider tariffs of up to 100 percent on China and India for their purchases of Russian oil. That move threatened to make relations even worse after Trump had already raised US tariffs on Indian exports to 50 percent this summer, citing India’s continued energy trade with Moscow, according to the reports by POLITICO.

India, the world’s second-largest buyer of Russian oil, protested being singled out while other major importers like China and Turkey faced no penalties.

Mark Linscott, a former US trade negotiator who worked on India talks during Trump’s first term, said the breakthrough was less about a single concession and more about “productive conversations with adults in the room.”

Trump has also upset New Delhi in recent months by claiming credit for helping mediate a flare-up between India and Pakistan — a claim India strongly rejected. Modi underscored in June that issues with Pakistan must be settled directly, not through outside mediation.

At the same time, Modi has reminded Washington that India has other partners, publicly displaying warm ties with Chinese President Xi Jinping and Russian President Vladimir Putin. That worried observers who feared India might lean closer to Beijing and Moscow if US ties soured further.

Still, both sides have made small moves toward reconciliation. India slightly cut back its Russian oil imports in late August, while Trump appointed longtime ally Sergio Gor as US ambassador to India, a choice seen as a goodwill gesture, according to POLITICO.

Lisa Curtis, a former White House South Asia adviser, said recent steps suggest both leaders want to get the relationship back on track. “There have been signs of the two sides moving toward each other in the last couple of weeks,” she said. “The leaders seem to be trying to build on these steps forward.”

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