KEY POINTS
- Trump says negotiations will continue, confident of a “successful conclusion”
- Modi calls US and India “close friends” and seeks to wrap up talks “at the earliest”
- Tariff hikes earlier this year strained exporters and disrupted supply chains
- “Mission 500” trade target at risk amid recurring friction
WASHINGTON/NEW DELHI: Indian Prime Minister Narendra Modi said Wednesday he would speak soon with US President Donald Trump to push for an early conclusion of trade talks.
The statement came in response to Trump’s similar overture a day ago, at a time when the two countries continue to grapple with disputes that have unsettled one of the world’s most significant economic partnerships.
Modi, writing on X, said India and the United States are “close friends and natural partners” and that their negotiating teams are working to finalise discussions “at the earliest.”
India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest. I am also looking forward… pic.twitter.com/3K9hlJxWcl
— Narendra Modi (@narendramodi) September 10, 2025
His remarks came a day after Trump declared on Truth Social that the two sides are pressing ahead with talks to address trade barriers, adding he saw “no difficulty in coming to a successful conclusion for both of our Great Countries.”
The exchange of messages is the latest sign of a tentative thaw after months of friction. In August, the Trump administration imposed punitive tariffs of up to 50% on Indian imports, citing both trade imbalances and New Delhi’s continued purchases of Russian oil.
The measures have dampened key export sectors, including textiles, gems, footwear and chemicals, and prompted Indian firms to scramble for alternative markets.
This turn of events has clouded the ambitious “Mission 500” pledge unveiled during Modi’s visit to Washington in February, when the two leaders set a goal of expanding bilateral trade to $500 billion by 2030. Analysts warn that unless the current round of talks produces clarity, the target could remain aspirational.
India’s finance minister, Nirmala Sitharaman, confirmed this week that diplomatic and trade teams remain in contact with US counterparts.
American officials, meanwhile, have used tariff measures as leverage, even as working groups continue negotiating market access and standards.
Economists say the volatility in policy has already slowed orders and raised costs for small and medium exporters in India, while US buyers face higher import bills.
According to a briefing note by the Federation of Indian Export Organisations (FIEO), apparel and leather exporters have reported cancelled orders and rising warehousing costs.
Meanwhile, a senior US-based trade analyst at the Peterson Institute for International Economics told Reuters that “until both sides deliver predictable commitments, businesses will keep treating this relationship as unstable.
”While both leaders emphasised optimism, diplomats acknowledge that political calculation shapes their approaches.
Trump has tied tariffs to his “America First” agenda, while Modi faces the task of safeguarding India’s trade interests without jeopardising its strategic partnership with Washington.
Observers expect the leaders’ upcoming call to set the tone for the next stage of negotiations. For now, the trajectory of US–India commerce remains unsettled — with hopes of a breakthrough tempered by recent setbacks that underscore the topsy-turvy nature of the trade relationship since the start of 2025.
