U.S. President Donald Trump said on Tuesday (9 September) his administration is continuing negotiations to address trade barriers with India and that he would talk to Prime Minister Narendra Modi, raising hopes of a deal after weeks of discord.
Modi reciprocated the optimism in a social media post on Wednesday (10 September), saying Washington and New Delhi "are close friends and natural partners."
He said teams from both countries are working to conclude the trade discussions at the earliest.
Trump last week said India had offered to reduce its tariffs on U.S. goods to zero, adding that the proposal was late and the South Asian country should have lowered its duties years ago.
India's chief economic adviser this week warned that Trump's 50% tariffs imposed on Indian exports to the U.S. could shave half a percentage point off India's gross domestic product this year.
Trump had promised for months that the two sides were close to clinching a trade deal, only to double new tariffs on Indian imports to 50%, sparking questions about the future of the U.S.-India relationship, which had strengthened in recent years, including during Trump's first term.
Trump imposed the higher tariffs on India after New Delhi refused to stop buying Russian oil in defiance of his efforts to end Moscow's war in Ukraine.
The Financial Times reported on Tuesday that Trump was pressing the European Union to impose 100% duties on imports from India and China.
U.S.-India two-way goods trade totaled $129 billion in 2024, with a $45.8 billion U.S. trade deficit, according to U.S. Census Bureau data.
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