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India and the US: Trump and Modi Signal Trade Reconciliation

By September 10, 2025September 11th, 2025No Comments

Description: US President Donald Trump and Indian Prime Minister Narendra Modi, signaled diplomatic rapprochement in the bilateral trade negotiations between India and the US, as the leaders exchanged cordial messages over social media. Trump initially stated that US – India trade talks were firmly back on the right path after previously this month stating that India was willing to reduce tariffs on US imports to zero percent. Prime Minister Modi on his behalf commended Trump’s statements and added that a breakthrough pathway has been unlocked for reaching the limitless potential of the US – India partnership. The reconciliation arrives after Modi was seen establishing firmer ties with US adversaries such as China and Russia, during the Shanghai Cooperation Organization Summit. Trump previously imposed 50% tariffs on India due to the country’s collaborationist nature in the Ukraine conflict, by buying large amounts of oil from Russia for its own national benefit while also dispersing the surplus on the global market. While warming to India, Trump reportedly pressured the European Union to impose 100% tariffs on China and India as a measure to pressure the countries out of cooperation with Russia, regarding the war in Ukraine. India has rejected these claims stating that trade negotiations with the EU were stable.

Impact: The US and India despite recent diplomatic overtures and public posturing have moved towards accepting trade and strategic realities of codependency on the global stage. Trump alienated India by pressuring Modi to cease buying Russian oil which resulted in Modi’s deflection of US trade talks, substituting the public narrative by courting China and Russia. India ensures its strategic ambiguousness and solidifies its position as a balancing counterforce of confronting American and Chinese influence in Asia. The US on the other hand secures a stable strategic gateway in Asia, not only through economic and industrial means but also opening possibilities for inserting itself in India’s predominantly Russian defensive sector. The trade talks according to present signals are expected to progress rapidly, as both countries are aiming at concluding an ailing bilateral dispute which is burdening foreign policy in both countries.

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