PM Modi Responds Warmly to Trump on Trade Talks
Leaders eye brighter future for India-US partnership.
Prime Minister Narendra Modi on Wednesday expressed optimism about resolving trade tensions with the United States, warmly responding to President Donald Trump’s positive remarks on ongoing negotiations. In a post on X at 08:02 AM IST, Modi highlighted the strong ties between the two nations, stating, “India and the US are close friends and natural partners. We are working to conclude the trade 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.”
Modi’s comments followed Trump’s statement on Truth Social late Tuesday, where he expressed confidence in a successful outcome, saying, “I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!” Trump also noted his anticipation for speaking with his “very good friend” Modi in the coming weeks. The exchange signals a thaw in relations strained by Trump’s August 27 decision to impose tariffs of up to 50% on Indian goods, including a 25% reciprocal tariff and a 25% penalty linked to India’s imports of Russian crude oil.
The tariffs have raised concerns in India, the US’s largest export market, with Chief Economic Adviser V. Anantha Nageswaran warning of a potential 0.5–0.6 percentage point hit to India’s GDP growth this fiscal year. Sectors like textiles, gems, and automobiles, which account for over half of India’s $87 billion in exports to the US, face significant challenges. To counter the impact, India has reduced GST on consumer goods and is exploring new markets like Southeast Asia.
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The recent warmth marks a shift from Trump’s earlier criticism, when he called India a “dead economy” over trade deficits and oil imports. The U.S.-India Business Council has welcomed the renewed dialogue, noting the $131.84 billion trade relationship in 2024-25 and the ambition to reach $500 billion by 2030. Modi and Trump, who last spoke at the G7 summit in June 2025, are focused on deepening cooperation in defense, technology, and investment. With a US delegation expected in Delhi by mid-August, their upcoming talks could pave the way for a breakthrough in resolving trade frictions.
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