Tariff Talks: Modi, Trump Optimistic On Resolution; India Trade Delegation May Head To Washington Soon

An Indian trade delegation is reportedly getting ready to visit Washington next week to further ongoing trade negotiations with the United States. Both nations are eager to resolve trade differences and finalize an agreement soon.

Prime Minister Narendra Modi struck an optimistic note on Wednesday, responding to comments made by US President Donald Trump on social media. In a post on X, PM Modi affirmed that “India and the US are close friends and natural partners” and expressed strong confidence that the ongoing trade talks “will pave the way for unlocking the limitless potential of the India-US partnership.” 

He also noted that both teams are working to conclude these discussions at the earliest. 

Late last night, Trump, writing on Truth Social, wrote that he was “pleased to announce that India and the U.S. are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!”

Rising Tariff Tensions

This exchange follows a period of heightened tension after Trump’s administration imposed tariffs totaling 50% on Indian exports last month, mainly in response to India’s continued purchase of Russian oil. 

On the other hand, according to news reports, Trump has urged European Union officials to impose high tariffs on the South Asian nation. In an effort to pressure Moscow to end the war in Ukraine, he has called for EU tariffs of up to 100% on imports from India and China.

Defense Deals In The Works

Meanwhile, a US delegation is expected to visit India on September 17-18 to discuss the prices of anti-submarine aircraft worth $3 billion. Also, both countries are set to sign a deal this month for 113 GE-404 aircraft engines, which will power India's Tejas Mark IA fighter jets. 

The optimism over renewed trade talks has spurred a rally in Indian equity markets on Wednesday, with the Nifty scaling 25,000 for the first time since August 25. Retail sentiment on Stocktwits, too, has turned ‘bullish.’

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