US President Donald Trump said on Tuesday that his administration was pursuing negotiations to combat commercial obstacles with India and that he would speak to Prime Minister Narendra Modi in a sign of reset after weeks of diplomatic friction.
Trump, in a scored change, said he was looking forward to talking to Modi in the “weeks to come” and expressed his optimism about the finalization of a trade agreement. “I am sure that there will be no difficulty in concluding a successful conclusion for our two major countries,” he said in an article on social media.
On Wednesday, Modi did the same thing in an article on social media, saying that Washington and New Delhi “are close friends and natural partners.” He said teams from both countries are working to conclude business discussions as soon as possible. “I also can’t wait to speak with President Trump together to ensure a brighter and more prosperous future for both people,” said Modi.
The last remarks of the two leaders increased the shares of India to more than 0.5%.
For months, Trump had assured that the two parties were approaching a trade agreement, but he then doubled new prices on Indian imports to 50%, which has shown concerns about the future of the American-Indian relationship, which had strengthened in recent years, including during Trump’s first mandate.
In recent weeks, Trump and his senior officials have criticized India for buying Russia oil and said India was funding war in Ukraine, an accusation that New Delhi denies.
Discord on the United States has coincided with the improvement of relations with China. At the end of last month, Modi made his first visit to China in seven years for a summit organized by Chinese President Xi Jinping and was seen holding the hand of Russian President Vladimir Putin.
“Although Trump’s social media statements and Modi report a potential rapprochement between the United States and India, it is always premature to assume that resolution will arrive quickly,” said Madhavi Arora, an economist at Emkay Global.
“With Trump, we will have to wait for more concrete signals that an agreement is in the offer.”
Meeting to start
Indian and American trade officials are likely to plan visits to restart commercial negotiations in person in September, according to sources. A planned visit to American commercial negotiators in New Delhi from August 25 to 29 was canceled, after the commercial discussions of its main roadblocks.
The Commercial Ministry of India refused to comment on the report of a new series of meetings between commercial negotiators.
The trade in American double -sense goods totaled $ 129 billion in 2024, with an American trade deficit of $ 45.8 billion, according to US Census Bureau data.
Last week, Trump said that India had proposed to reduce its prices on American products to zero, adding that the proposal was late and that the Southern Asian country should have reduced its functions years ago.
Reuters reported that Trump had urged the European Union to impose 100% prices on China and India as part of a pressure strategy on Putin.
Indian government officials in New Delhi said they did not think the EU provided for sanctions against India and that New Delhi had been assured that no negative surprise will derail the current trade negotiations with the EU.
