New Delhi: After weeks of simmering diplomatic tensions between India and the US over Donald Trump’s claim of brokering India-Pakistan ceasefire and tariffs on Indian goods due to its purchase of Russian oil, Tuesday morning saw a thaw incoming.
The US President Donald Trump has posted on Truth Social that he is pleased to announce that India and the United States are continuing negotiations to address the trade barriers between the two. He further wrote, “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!”
Prime Minister Narendra Modi responded by reposting a screen grab of Trump’s message, and said that the two countries are close friends and natural partners.
“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 wrote, signalling a thaw in frayed relations.
India and the US are close friends and natural partners. 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… pic.twitter.com/3K9hlJxWcl
— Narendra Modi (@narendramodi) September 10, 2025
Trump also ReTruthed (reposted) Modi’s comments on Truth Social.
However, at the same time, Trump is said to have urged European Union officials to impose tariffs of up to 100 percent on China and India to pressure Russian President Vladimir Putin, according to a Reuters report. Trump reportedly made the request via conference call to EU sanctions envoy David O’Sullivan and other EU officials, who are currently in Washington to discuss sanctions coordination.
Sources in the know said that India’s chief trade negotiator Rajesh Agarwal, a Special Secretary in the Ministry of Commerce and Industry, is likely to visit the US along with his team next week to resume trade negotiations with his US interlocutors.
A US trade delegation that was scheduled to come last month had cancelled its visit while it has been indicated that Prime Minister Modi will not be traveling to the US for the UN General Assembly scheduled later this month.
Those aware of the developments said that heavy back channel talks were held between both sides, with several in the US dissuading President Trump from taking a hard line stance against India and disturbing a relationship that has been carefully nurtured by past administrations, both in India and the US. Sources added that despite the public and social media noise, India maintained a communication channel with the US administration.
ThePrint was the first to report in July that India and the United States have “almost” finalised a mini trade deal after weeks of hectic and hard-fought negotiations, even as both sides continue to work on the larger free trade agreement that will be finalised later this year.
However, a fuming Trump, who wanted credit for intervening in the India-Pakistan conflict, something that New Delhi never gave, did not go ahead with the mini deal, and responded by imposing higher tariffs.
Sources said that during the last round of trade talks held in July, the Indian side had presented its recommendation to the US regarding the mini trade deal and Washington had not objected, leading to a consensus. It would have involved concessions on the critical issue of agriculture and dairy products by both sides—though not 100 percent, as sought by the Trump administration. New Delhi had agreed to specific demands from Washington D.C. to include certain agricultural products and dairy products, which are not produced commonly in India, in the deal.
Other areas that were to see tariff cuts on India’s end included American automobiles. Trump has publicly criticised India’s high tariff on foreign-made automobiles.
India roughly exports about $77 billion worth of goods to the US, while importing around $42 billion from the world’s largest economy.
In February, Prime Minister Modi and Trump had announced during the former’s two-day visit to the US that the “first tranche” of a larger bilateral trade deal would be announced by fall 2025.
(Edited by Mannat Chugh)
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