Modi, Trump Signal Progress on Trade Talks Despite Tariff Strains

Prime Minister Narendra Modi on Wednesday said Indian and U.S. teams are working to conclude discussions on a trade deal that could “unlock the limitless potential” of the bilateral partnership, responding to President Donald Trump’s upbeat remarks that the two sides would face “no difficulty” in reaching an agreement.

It was the second friendly exchange between the two leaders on social media in four days, even as tensions remain high over Trump’s decision to double tariffs on Indian goods to 50% in response to New Delhi’s purchases of Russian oil. Modi described India and the U.S. as “close friends and natural partners” and said he looked forward to speaking with Trump soon.

Earlier, Trump posted on Truth Social that talks were continuing “to address the Trade Barriers between our two Nations” and expressed confidence in a successful outcome. He too said he expected to speak with Modi in the coming weeks.

The positive tone contrasted with pressure from Trump’s aides, including White House trade adviser Peter Navarro, who has accused India of “profiteering” from Russian oil and claimed its tariffs hurt American jobs. Navarro said India “must come around at some point” instead of “laying down with Russia and China.”

The outreach also came just after the Financial Times reported that Trump had asked the European Union to join Washington in imposing tariffs of up to 100% on India and China to increase pressure on Russia. U.S. officials said Trump raised the demand during a meeting on the next EU sanctions package against Moscow.

While formal trade talks broke down weeks ago, Indian officials insist discussions remain ongoing. The negotiations are also tied to a planned Quad summit in India later this year, though dates have not yet been finalized.