Prime Minister Narendra Modi said on Thursday that he spoke to U.S. President Donald Trump, adding that they “reviewed good progress achieved in trade negotiations”. He added that the leaders agreed to stay in close touch over the coming weeks.
Commerce ministry officials have said that after the latest meetings of trade officials in Washington, another round of trade negotiations is expected soon in either country.
Ongoing Negotiations
Last month, Trump also publicly stated that negotiations with India were progressing and voiced optimism about a successful outcome.
“I am pleased to announce that the United States of America and India are continuing discussions to address trade barriers between our two nations. I look forward to speaking soon with my very good friend, Prime Minister Modi. I am confident that reaching a mutually satisfactory conclusion will be straightforward for both of our great countries!” Trump posted on Truth Social.
PM Modi also echoed this sentiment on X, stressing the natural partnership between the two nations.
“India and the U.S. are close friends and natural partners. I am confident our trade discussions will unlock the immense potential of the India-U.S. partnership. Our teams are working diligently to conclude these talks swiftly. I also look forward to speaking with President Trump, as together we will ensure a brighter, more prosperous future for our peoples,” the PM wrote.
Highest Tariffs on India
Trump imposed a 50% tariff on most exports from India, among the highest for any U.S. trading partner. This move impacts about $50 billion of Indian exports to the U.S., mainly hurting labour-intensive sectors such as textiles, gems and jewellery and the shrimp industry.
A 25% penalty was also imposed on India by the Trump government for New Delhi’s continued imports of Russian oil.
Washington earlier said that India’s purchase of Russian oil helped fund Moscow’s war in Ukraine and that New Delhi also profits from it. India had rejected the accusation as a double standard, pointing to U.S. and European trade links with Russia.
The Ministry of External Affairs (MEA) has labelled the tariffs as unjustified and expressed confusion over the rationale, pointing out that China remains the largest buyer of Russian crude.
To offset the impact of tariffs, PM Modi has cut taxes on everything from shampoos to cars last month in the biggest tax overhaul since 2017, even as India continues to spend aggressively on infrastructure projects.
About one-fifth of India’s total exports in 2024 went to the United States. The new tariffs affect about three-quarters of all Indian goods exported there.
(with inputs from Reuters)
