On Tuesday, September 16th, President Trump called Indian Prime Minister Narendra Modi to congratulate him on his 75th birthday. This phone call marked the first public conversation between the two leaders in three months, raising hopes for easing tensions between the two major economies.
Following their discussion, Trump posted on Truth Social, saying, “Just had a great call with my friend, Prime Minister Narendra Modi of India. I wish him a happy birthday! He’s doing a fantastic job. Narendra: Thank you for supporting efforts to end the war between Russia and Ukraine!”
Prime Minister Modi also wrote on X, “Thank you my friend President Trump, for calling and sending warm wishes on my 75th birthday. Like you, I am committed to taking the Indo-US comprehensive global partnership to new heights. We support your proposal to resolve the Ukraine conflict peacefully.”
This interaction and positive statements on social media are seen as a proactive signal of a “reset” in the relationship between Washington and New Delhi, especially after the U.S. increased tariffs on India to 50% last month.
The leaders’ phone call comes as officials from both countries resume trade negotiations.
On Tuesday, the U.S. was represented by Brendan Lynch, Assistant U.S. Trade Representative for South and Central Asia, who led discussions with India’s Chief Negotiator Rajesh Agrawal in New Delhi.
The Indian Ministry of Commerce described the talks with U.S. officials as “constructive” and “forward-looking,” with both sides committing to intensifying efforts to reach a “mutually beneficial” trade agreement soon.
However, it remains unclear whether India will meet the Trump administration’s demands, including cutting purchases of Russian oil and opening its agricultural and dairy markets to American companies, which are likely to be major sticking points in negotiations.
Last month, to pressure Russia to stop aggression against Ukraine, Trump called on China and India to halt purchases of Russian oil and imposed a punitive tariff hike of 25% on goods from India from August 27, doubling the overall tariff to 50%.
As a result, relations between the two countries soured, leading to the cancellation of the U.S. delegation’s planned trip to New Delhi from August 25 to 29.
The repercussions of this trade conflict are gradually becoming apparent, with India’s exports to the U.S. dropping from $8.01 billion in July to $6.86 billion in August, according to data released by the Indian Ministry of Commerce on Monday. Exporters warn that the comprehensive impact of high tariffs will become more pronounced starting in September.
In recent weeks, the Trump administration has been urging allies including the G7 and the European Union to increase sanctions on India and China, the largest buyers of Russian energy, which could complicate reaching a trade agreement with New Delhi and jeopardize the fragile trade truce between the U.S. and China.