U.S. President Donald Trump and Indian Prime Minister Narendra Modi expressed optimism on Tuesday about reaching a trade agreement, signaling a softening in rhetoric after months of tension over tariffs and Russian oil purchases.
Trade talks gain momentum
Modi said negotiations with Washington could unlock the “limitless potential of the India-US partnership,” adding that both leaders plan to speak in the coming weeks. Trump responded that he sees “no difficulty in coming to a successful conclusion for both of our great countries.”
Relations have fluctuated recently, particularly after the U.S. imposed an additional 25% tariff on Indian imports in August over Russia oil purchases, bringing total duties to as high as 50%. The situation was compounded when Modi shared a stage with Chinese President Xi Jinping and Russian President Vladimir Putin at the Shanghai Cooperation Organization summit.
Sticking points and strategic considerations
India continues to defend its purchases of Russian crude, framing energy choices as a matter of national interest. Modi also resisted U.S. demands to open the agricultural and dairy sectors, arguing such concessions could negatively impact millions of poor farmers.
Analysts note that India’s sizable economy and geopolitical influence allow New Delhi to maintain a firm negotiating stance. Chietigj Bajpaee, senior research fellow at Chatham House, commented: “Given India’s geopolitical heft and sizable economy, New Delhi believes that it can maintain this tough negotiating position.”
U.S. pressure on global partners
The conciliatory tone between Trump and Modi comes amid reports that Trump requested the European Union to impose 100% tariffs on India and China over Russian oil purchases, aiming to pressure Moscow to end the war in Ukraine. Despite these tensions, both leaders emphasized the potential for a successful trade deal and continued collaboration.
