New Delhi / Washington, September 2025 — U.S. President Donald Trump and Indian Prime Minister Narendra Modi are expected to hold discussions on trade in the coming weeks, following a period of tension between the two countries. The announcement has raised hopes for a reset in U.S.–India trade relations.
- President Trump stated that his administration is continuing negotiations to address trade barriers with India, expressing confidence that a deal could be reached.
- Prime Minister Modi responded positively, calling the U.S. and India “close friends and natural partners,” and said his team is working to conclude discussions “at the earliest.”
- One major point of contention has been U.S. tariffs: Trump doubled tariffs on certain Indian imports to 50%, citing India’s continued purchases of Russian oil.
- India is reportedly offering to reduce tariffs on U.S. goods down to zero, though sources say this offer came later in the process.
Context & Implications
- Bilateral trade between the U.S. and India reached roughly US$129 billion in 2024, with the U.S. running a trade deficit of about US$45.8 billion.
- The discussions come after heightened diplomatic strain, including disagreements over energy trade, tariffs, and geopolitical alignments.
- A successful negotiation could reduce trade barriers, ease tension, and potentially lead to more stable economic cooperation between the two nations. It might also impact markets, investor confidence, and trade policy shifts.
What’s Next
- Trump and Modi are expected to speak directly in the upcoming weeks.
- Key issues likely to be on the agenda include: tariffs on Indian exports, U.S. demands over energy imports and Russian oil, market access for American goods in India, and possibly reconciling differences in regulatory and trade practices.
- Outcomes could shape future U.S.–India trade relations significantly, especially given India’s growing economic weight and strategic position.
