US, India trade talks advance after 'wonderful' phone call between leaders

U.S. President Donald Trump reported a cordial phone conversation with Indian Prime Minister Narendra Modi, as Washington and New Delhi try to ease friction over tariffs and India’s Russian oil purchases while formal trade talks restart this week.

Trump wrote on TruthSocial on Tuesday that he had a “wonderful” conversation with the Indian leader and wished him a happy birthday. “He is doing a tremendous job,” he added. “Narendra: Thank you for your support on ending the War between Russia and Ukraine!”

The timing of the call coincided with the two governments resuming work on a trade pact, which both described as positive, as they seek to repair relations after the president last month raised duties to 50% on Indian exports.

That action doubled the previous 25% import levy on Indian products, a move the administration said responded to India’s trade barriers and also sought to penalize New Delhi for continuing to buy Russian energy.

Modi, in a separate post on X, said India supported Trump’s “initiatives towards a peaceful resolution of the Ukraine conflict.”

Unresolved oil dispute may impact future deals

Ukraine and several partner nations argue that energy purchases from Russia by India and China blunt the effect of sanctions meant to pressure Russian President Vladimir Putin to end the war in Ukraine. Indian officials have said they will keep importing Russian crude so long as it remains economically sensible.

The United States and India had earlier targeted completion of a bilateral deal this fall, but talks stalled.

In recent months, Trump has adopted a tougher posture toward New Delhi as he seeks more leverage over its links with Moscow. Modi also said India is “fully committed to taking the India-US Comprehensive and Global Partnership to new heights.”

How the two sides will bridge their differences over oil buying is still uncertain as addressed in a Cryptopolitan’s report. In recent weeks, Trump has urged other partners, including the Group of Seven, to step up sanctions on India and China, the largest buyers of Russian energy.

Such measures could make it harder to clinch a trade agreement with New Delhi and could also unsettle a fragile trade truce with Beijing.

Seven‑hour talks pursued trade progress as former trade allies reconnect

On Tuesday, India and the United States said they would intensify efforts to reach an early conclusion of a “mutually beneficial” trade agreement, putting aside recent strains in ties.

According to New Delhi, the announcement followed a seven-hour session at Vanijya Bhawan between the lead negotiators. The U.S. side was headed by Brendan Lynch, assistant U.S. trade representative for South and Central Asia, while India’s team was led by Rajesh Agrawal, special secretary in the commerce department.

“Acknowledging the enduring importance of bilateral trade between India and the U.S., the discussions were positive and forward looking, covering various aspects of the trade deal. It was decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement,” the Ministry of Commerce and Industry said in a statement.

This was Lynch’s third trip to India and the first formal session between the negotiating teams since the U.S. administration last month introduced relatively steep duties, a 50% tariff on most Indian goods, alongside a 25% punitive levy tied to New Delhi’s purchases of Russian oil.

The meeting also reopened the path to a sixth negotiating round that had been slated for August 25 in New Delhi but was postponed when tensions rose. Neither side set a fresh date. Both described the latest engagement as a stock-taking exercise rather than a formal round, following a pause of about one and a half months.

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