Trump Calls Modi on Birthday Amid Tariff Dispute, Signals Progress in Trade Talks
Birthday Call Marks Thaw in Tensions
US President Donald Trump called Indian Prime Minister Narendra Modi on Wednesday to wish him a happy 75th birthday. The gesture came after weeks of friction over Washington’s steep tariffs on Indian imports and was widely seen as an attempt to reset ties.
Leaders Exchange Praise
Following the call, Trump praised Modi on social media, saying he was doing a “tremendous job” and thanked him for supporting efforts to end the Russia-Ukraine war. Modi described Trump as a “friend” and reaffirmed their commitment to taking the US-India partnership to “new heights.”
Tariffs Spark Dispute
The conversation followed heightened tensions after the US imposed 50% tariffs on Indian goods, with Trump calling half of it a penalty for India’s purchase of Russian oil and weapons. New Delhi defended its energy decisions, calling the tariffs “unfair.” The dispute had stalled progress on a bilateral trade agreement.
Trade Talks Resume in Delhi
On Tuesday, a delegation led by US trade negotiator Brendan Lynch held talks with India’s commerce ministry officials in New Delhi. While the meeting was not an official new round of negotiations, both sides described it as a constructive step toward resolving their differences.
Impact on Indian Exports
According to trade ministry data, India’s exports to the US dropped to $6.86 billion in August, down from $8.01 billion in July. Analysts say the decline reflects the immediate strain caused by the tariff battle.
Trump Pushes EU for Tariffs
Despite his conciliatory tone with Modi, Trump has continued to defend high tariffs. Last week, he called on the European Union to impose up to 100% tariffs on both China and India to pressure Russian President Vladimir Putin.
India’s Parallel Talks with EU
At the same time, India has been pushing forward with its free trade agreement with the EU, with large sections of the deal reportedly close to finalization. This highlights India’s broader trade strategy despite its friction with Washington.
Optimism on Both Sides
Both Trump and Modi have struck an optimistic tone about future trade negotiations. Trump expressed confidence in a “successful conclusion,” while Modi assured that “our teams are working to conclude these discussions at the earliest.”
Special Relationship Endures
Earlier this month, Trump emphasized that despite occasional disagreements, the US and India share a “special relationship.” He added: “There’s nothing to worry about. We just have moments on occasion.”