Donald Trump Signals India Trade Talks Reboot, Looks Forward to Speaking With ‘Very Good Friend’ PM Modi
US President Donald Trump on Tuesday announced that Washington and New Delhi are set to resume negotiations to resolve their long-standing trade disputes, signaling a potential thaw in economic tensions between the two strategic partners. In a characteristic social media post, Trump expressed confidence in reaching a swift and successful agreement, underscoring his warm personal rapport with Prime Minister Narendra Modi.
“I am pleased to announce that India and the United States of America are continuing negotiations to address the Trade Barriers between our two Nations,” Trump wrote on his platform, Truth Social. “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!” While neither the White House nor the Indian Ministry of Commerce has issued an official confirmation, Trump’s statement has reignited hopes for a breakthrough.
The trade relationship has been fraught with friction since Trump’s first term, which saw the imposition of tariffs on Indian steel and aluminum in 2018, leading to retaliatory measures from India. A year later, Washington revoked India’s duty-free access for over $6 billion in goods under the Generalized System of Preferences (GSP), a move that hit Indian exporters hard. Subsequent efforts under both the Trump and Biden administrations to hammer out even a limited trade deal have stalled over contentious issues such as digital trade, data localisation rules, and market access for American agricultural and medical products.
Despite these hurdles, the broader bilateral relationship has flourished, with deepening cooperation in defence, technology, and supply chain resilience, particularly within the Indo-Pacific framework. Bilateral trade has continued its upward trajectory, touching $192 billion in 2024, making the United States India’s largest trading partner.
Analysts suggest Trump’s announcement may be strategically timed to appeal to the influential Indian-American voter base ahead of the 2026 midterm elections, while also laying the groundwork for a comprehensive trade pact. Any renewed talks are expected to focus on restoring India’s GSP status, removing tariffs, and establishing joint frameworks for critical sectors like e-commerce and semiconductors.
