Trump Praises ‘Good Friend’ Modi Publicly, But Reportedly Pressures EU Privately To Clamp Down On India With 100% Tariffs

U.S. President Donald Trump struck a constructive tone on Tuesday regarding trade negotiations with India and his "very good friend," Indian Prime Minister Narendra Modi, even as he urged European Union officials, behind closed doors, to impose high tariffs on the South Asian nation.

Trump reportedly discussed the proposal in a meeting with EU officials on Tuesday, according to a Financial Times report, based on information from unnamed U.S. officials, published in the evening. He has asked for up to 100% EU tariffs on imports from India as well as China, in a move aimed at turning up the heat on Moscow to end the war in Ukraine.

The two nations heavily purchase Russian oil, something Trump has criticized, saying that it indirectly funds the Ukraine war.

Last month, the U.S. announced a 50% tariff rate on Indian exports, in part because of the country's trade with Russia. The move came as a surprise and signaled tensions between the U.S. and India, which have traditionally had friendly relations.   

About an hour after the FT report, Trump posted on his Truth Social account that the U.S. is working with India to resolve trade barriers.

"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!" he said.

Modi replied through his X account early Wednesday morning (India time), saying the two countries are "close friends and natural partners" and expressing confidence in reaching a trade agreement that benefits both.

Meanwhile, Trump told reporters Tuesday evening that he expects to have a call with Russian President Vladimir Putin "this week or early next week". Trump has for months pushed to end the war in Ukraine with limited success, as Russian attacks in the country have intensified in recent weeks.

The latest development also follows a seemingly successful summit between Chinese President Xi Jinping, Putin, and Modi last week.

The U.S. market has outperformed India’s in terms of growth so far this year, a period marked by intense volatility due to Trump’s ever-evolving tariff plan. The SPDR S&P 500 ETF Trust (SPY) has gained 10.3%, compared to a 1.6% decline in the iShares MSCI India ETF (INDA), which tracks Indian stocks.

On Stocktwits, the retail sentiment for SPY remained in the ‘bullish’ zone, while that for INDA dropped to ‘neutral’ from ‘bullish’ the previous day.

Editor’s note: This story has been updated with Indian PM Narendra Modi’s reaction to Trump’s Truth Social post.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on