NextFin news, US President Donald Trump called Indian Prime Minister Narendra Modi on Wednesday in Delhi to wish him a happy 75th birthday, marking a notable moment amid ongoing trade negotiations between the two countries.
The phone call came after weeks of tension following the US imposing a 50% tariff on Indian imports, partly as a penalty for India's purchase of Russian oil and weapons. India has defended its actions citing domestic energy needs and labeled the tariffs as "unfair."
Trade talks between the US and India took place in Delhi on Tuesday, led by US trade negotiator Brendan Lynch and officials from India's commerce ministry. Both sides described the discussions as "positive" and expressed optimism about reaching a trade agreement.
Despite the tariffs, Trump expressed optimism about the negotiations and posted on social media praising Modi's leadership and thanking him for support on ending the Russia-Ukraine war. Modi reciprocated by calling Trump a "friend" and reaffirming their commitment to strengthening bilateral ties.
India's exports to the US declined from $8.01 billion in July to $6.86 billion in August, according to Indian trade ministry data cited by Reuters. The recent talks were described by Delhi as a "discussion" rather than the start of a new negotiation round, focusing on how to finalize an agreement.
Trump has also urged the European Union to impose tariffs of up to 100% on China and India to pressure Russia to end the war in Ukraine, coinciding with India's nearing finalization of a free trade agreement with the EU.
The call on Wednesday was the first between Trump and Modi since the US tariffs were imposed last month. It signals a potential thaw in relations as both leaders aim to resolve trade barriers and enhance their strategic partnership.
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