AsianFin -- Heads of the United States and India on Tuesday expressed their confidence on trade talks between two countries, raising hope for easing tension following extra U.S. tariffs on India over Russia oil purchase.
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U.S. President Donald Trump on Tuesday said he looks forward to speak with his “very good friend”--Indian Prime Minister Narendra Modi in the next weeks, and confirmed his administration will continue negotiations with India to address bilateral trade barriers.
“I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations,” Trump posted on his social media platform Truth Social. “I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming week.” He added that he felt certain “there will no difficulty in coming to a successful conclusion” for both nations.
Modi then sent positive signal on trade talks. He forwarded Trump’s aforementioned post and affirmed the discussion between two countries will continue, calling the U.S. close friend. “India and the US are close friends and natural partners,” Modi said in a post on X. ”I’m confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership.”
Modia also said teams are working to conclude the discussion “at the earliest.” “I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people,” the prime minister said in his post.
Trump and Modi’s remarks suggested a major breakthrough for the U.S.-India relationship amid heightened trade tensions these months.
Trump last month hit India with new tariffs over Russian oil purchases. The president on August 6 signed an executive order imposing an additional 25% tariff on imports from India, citing “the Government of India is currently directly or indirectly importing Russian Federation oil.”
India became the first country to be punished by the U.S. over its buying Russian oil.The new tariffs entered into effect on August 27, 21 days after announcement of the order. India since late August faced a total of 50% extra U.S. tariffs.
Modi two weeks ago was reported to reject direct conversation with Trump as Washington is moving forward its punitive tariff agenda.
Trump over the past weeks has made four attempts to speak with Modi on the phone, but the latter refused to take these calls, the Frankfurter Allegemeine Zeitung citing sources on August 26. The German newspaper pointed out the phone calls were made after Trump stunned India by levying extra 25% tariffs and calling it a “dead economy”.
The newspaper believed that Modi’s declining Trump’s phone calls are signs indicating the prime minister felt insulted and how he was irritated by what Trump had done. Modi’s reponse also illustrated New Delhi will not yield to U.S. pressure and wants to manage its relationship with Washington and Beijing in its own way.
