Modi and Trump Discuss Bilateral Trade Amid Ongoing Tensions

Indian Prime Minister Narendra Modi and United States President Donald Trump engaged in a telephone conversation on Thursday, addressing the status of the India–US Comprehensive Global Strategic Partnership. The discussion centred on enhancing bilateral trade and cooperation across various sectors, including defence and technology.

Both leaders expressed satisfaction with the ongoing strengthening of ties and acknowledged the importance of maintaining momentum in their shared commitments. An official statement indicated that they explored avenues for expanding collaboration in critical technologies, energy, and security, as well as other priority areas integral to the implementation of the India–US COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology) initiative for the 21st century.

During the call, they also reviewed key regional and global developments, agreeing to work closely to tackle common challenges and promote mutual interests. Prime Minister Modi described the conversation as 'very warm and engaging' and highlighted the two nations' dedication to global peace, stability, and prosperity.

The dialogue comes at a time of heightened trade tensions, particularly following the imposition of significant tariffs by the Trump administration on Indian exports. In August 2025, tariffs of up to 50% were introduced on a range of Indian goods amid broader concerns regarding India’s imports of Russian oil.

On the same day as the phone call, a US trade delegation was in New Delhi for discussions aimed at easing tensions, though negotiations have reportedly faced challenges due to disputes over market access and tariff policies. A senior US official noted that India had submitted its most robust proposals yet for a long-awaited bilateral trade agreement; however, the inclusion of American meat and dairy products in the Indian market remains a contentious issue.

US Trade Representative Jamieson Greer described India as a 'tough nut to crack' but acknowledged that the offers from the Modi government were the best the US had seen to date. Greer mentioned the ongoing discussions aimed at resolving these remaining issues, particularly resistance to American agricultural products.

Commerce and Industry Minister Piyush Goyal expressed hope that the US would act swiftly to sign a free trade agreement if they found India's proposals satisfactory. The discussions are critical as both nations strive to finalise the first phase of a framework trade deal this year.

As trade negotiations continue, the geopolitical landscape remains complex, particularly in the context of India's recent diplomatic engagements, including a summit with Russian President Vladimir Putin. The evolving dynamics have prompted discussions within the US Congress regarding the implications of current US foreign policy on its relationship with India.

In a recent hearing, US Representative Sydney Kamlager-Dove commented on the challenges posed by the Trump administration's approach towards India, emphasising the need for urgent action to repair the partnership. She remarked, 'We must move with incredible urgency to mitigate the damage that this administration has done to the US-India partnership.'

Both leaders committed to maintaining communication as they work towards deepening their strategic partnership and addressing the shared challenges facing the two nations.