India-US trade deal: India’s chief trade negotiator may travel to America next week; Modi-Trump call likely soon

Amidst signs of thaw in the India-US trade deal issues, government officials are likely to travel to America next week. The recent social media post exchanges between Prime Minister Narendra Modi and US President Donald Trump indicate an improvement in relations following a period of tension.

Trade talks are set to resume next week, following a pause triggered by the US imposing additional 25% tariff on India regarding Russian oil purchases. Both leaders are also expected to hold a telephone discussion soon.


According to an ET report, Rajesh Agarwal, the chief trade negotiator, will travel to Washington for continued discussions with American officials. A source familiar with the matter quoted in the report indicated the situation remains fluid, with uncertainty surrounding potential US tariff concessions in the coming months.

India-US ties: Signs of thaw

Modi and Trump have expressed mutual goodwill, with the PM responding to the US President's friendly overture on Wednesday. Trump had earlier referred to the Prime Minister as a "dear friend" and indicated positive developments in the previously stalled trade discussions.

"India and the US are close friends," Modi wrote on X. "I am confident our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions 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," Modi said in response to Trump's mention of the upcoming telephone conversation.

On Wednesday morning, Trump posted on Truth Social stating that he was "pleased to announce India and the US are continuing negotiations to address the trade barriers between our two nations."

Also Read | India-US trade deal: Should India be enthralled by Donald Trump’s outreach to PM Modi?

"I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks," the US President said. "I feel certain there will be no difficulty in coming to a successful conclusion for both of our great countries!"

Why has the US softened its stance on trade deal talks?

A source told ET that the informal meeting between Russian, Indian and Chinese leaders at the Shanghai Cooperation Organisation summit in Tianjin influenced this moderated stance from Trump. This gathering sparked discussions within pro-Trump circles regarding India-US relations.

Notably, in the past ten days, Trump has refrained from claiming credit for the India-Pakistan ceasefire arrangement, an issue that previously caused friction with New Delhi.

Friction in ties remains

Reports indicate that Trump has requested European Union authorities to evaluate implementing up to 100% tariffs on Chinese goods, with suggestions to extend similar measures to India.

Diplomatic friction has increased following the US implementation of a 25% duty on Indian imports, subsequently increased to 50% due to India's continued Russian oil procurement.

Also Read | Donald Trump wants EU to impose up to 100% tariffs on India, China - but it is unlikely to agree; here’s why

Various Trump administration officials, including White House adviser Peter Navarro, who maintains scrutiny on India and BRICS, accuse that India's oil purchases from Russia are supporting Moscow's military operations in Ukraine.

India has maintained its position on strategic independence, explaining that its Russian oil purchases are driven by domestic needs and global price stability considerations.

Finance Minister Nirmala Sitharaman recently affirmed India's continued Russian oil imports, emphasising that energy decisions follow national interests and economic reasoning rather than external pressure. She noted that the Reserve Bank of India is diversifying its US treasury holdings whilst purchasing gold.