Trump Signals Thaw in India-US Trade Standoff, Calls Modi a “Very Good Friend”
New Delhi, September 10, 2025 –After months of tariff tensions on the trade negotiation agenda, U.S. President Donald Trump has chosen a conciliatory tone on trade negotiations with India. Trump posted a message on Truth Social, expressing the hope that discussions to resolve trade differences would be through to a “happy ending” very soon and reaffirming his personal rapport with the Prime Minister, Narendra Modi. The statements were made following a significant change in tone after one of the most turbulent phases in bilateral ties in over two decades.
Trump’s Optimism on the Subject of Trade Talks
On September 9, Trump announced, “Washington and New Delhi are continuing negotiations to address the trade barriers between our two nations.” He looked forward to his next conversation with Modi in the coming weeks. He expressed confidence that there would be “no difficulty” in finalizing an agreement.
The context of the message was a controversial decision by Trump to double tariffs on Indian exports, raising the stay of duties for some goods to 50%. India’s continued purchase of discounted Russian crude oil in defiance of Western sanctions against Moscow put much strain on the bilateral relations. Previously, the U.S. president criticized New Delhi’s energy purchases as “very disappointing,” directly linking the tariff hike to India’s addiction to such supplies from Russia.
For many months, an unusually harsh tone emanated from Washington, leading many observers to proclaim that we’re probably at the lowest point in U.S.-India relations since the late 1990s. Trump’s latest statement seems an attempt to reset the dialogue to friendship and mutual respect, rather than continued hostility.
India’s Response and Strategic Context
In response, Modi quickly came back with Trump’s overtures, saying he “deeply appreciates and fully reciprocates” the sentiments of the U.S. president. Modi reiterated that the India-U.S. relationship remains “very positive and forward-looking,” referring to the Comprehensive and Global Strategic Partnership.
The timing of these exchanges is crucial. A couple of days back, Trump had posted an old photograph of Modi with President Vladimir Putin and leader Xi Jinping, insinuating that the U.S. risked “losing India and Russia to China.” That image found resonance with the renewed global interest in the trilateral interactions at the Shanghai Cooperation Organisation (SCO) summit at Tianjin.
Historically, India has often played a fine balancing act between its gas emancipation and cooperation with the global powers. During the Cold War, it remained close to Moscow while steadily building relations with Washington after the 2000s. Current tensions over oil imports come from some friction similar to the past. However, analysts argue both countries recognize the strategic necessity behind cooperating on defense, technology, and Indo-Pacific security.
Experts argue that while tariffs certainly raise some frictionary issues in the short run, the underlying foundation of trust and shared democratic values will put the overall framework for the two nations to weather any storm together. The current situation could present yet another cycle of dispute and reconciliation, illustrating the larger arc of their bilateral relationship.
Outlook for Bilateral Relations
Though the soft tone from Trump offers some hope, major hurdles remain. India’s justification of energy purchases from Russia in “national interest and market dynamics” counterposes that discounted oil has helped stabilize the Indian economy amid global energy shocks. Washington, however, finds such purchases tarnishing international sanctions against Moscow.
Going forward would mean much for the trade negotiators to balance and reconcile economic priorities with strategic imperatives. According to the analysts, resolution of tariff disputes and energy concerns will be key to repairing the trust factor in the partnership. However, an important stabilizing factor has been the personal rapport presented by Trump and Modi in past summits and rallies.
The coming weeks may showcase whether both countries manage to break away from this contentious phase. For now, Trump’s observation that he sees “no difficulty” in seeing a deal emerge has set a cautiously optimistic quickening of spirit, allowing for a new beginning for dialogue and cooperation at this time of ever-changing global alliances.
