Washington: U.S. President Donald Trump and Indian Prime Minister Narendra Modi are expected to hold direct talks in the coming weeks in an effort to resolve the escalating trade tensions that have strained ties between the two nations. Both leaders have voiced optimism about reaching an agreement, despite recent setbacks that saw Washington impose steep tariffs on Indian imports.
The trade dispute intensified last month when President Trump doubled tariffs on Indian goods to 50 percent, citing concerns over India’s continued purchase of Russian oil. Trump has also urged the European Union to adopt similar punitive measures, proposing tariffs of up to 100 percent on imports from India and China.
Prime Minister Modi, while reiterating India’s commitment to strengthening ties with the United States, said that both governments are working actively to conclude negotiations as soon as possible. He emphasized that the two countries share a “close partnership” and that dialogue remains the only way forward.
Business leaders have also called for calm. The U.S.–India Business Council urged Washington and New Delhi to resolve the dispute quietly, warning that the bilateral relationship is too important to be undermined by tariff wars.
The trade standoff comes despite both nations setting an ambitious goal earlier this year of expanding bilateral trade to \$500 billion by 2030.
Negotiations, however, have been hampered by disagreements over agriculture, automotive imports, and technology standards.
In response to the U.S. tariffs, India announced tax cuts on hundreds of consumer goods aimed at boosting domestic demand and supporting exporters. At the same time, New Delhi is pushing ahead with talks on a free trade agreement with the European Union, hoping to finalize a deal by the end of this year.
Officials in New Delhi are preparing to send a high-level trade delegation to Washington in the coming days to re-engage on stalled negotiations.
Observers say the upcoming conversation between Trump and Modi will be crucial in determining whether the world’s two largest democracies can ease tensions and chart a more stable economic partnership.