Trump exchanges warm words with India's prime minister as trade tensions simmer

Mumbai, India - Indian Prime Minister Narendra Modi received warm congratulations from US President Donald Trump on his birthday Tuesday and praise for his efforts to end Russia's war in Ukraine, as tense trade talks continued between the two countries.

President Donald Trump (r.) wished Indian Prime Minister Narendra Modi a happy birthday on Friday.
President Donald Trump (r.) wished Indian Prime Minister Narendra Modi a happy birthday on Friday.  © Collage: Biju BORO / AFP & SAUL LOEB / AFP

"Thank you for your support on ending the War between Russia and Ukraine!" Trump said in a post on Truth Social, describing his call with Modi as "wonderful" and praising India's leader for doing a "tremendous job."

Modi, posting on X, thanked Trump for his greetings, said he was determined to take bilateral ties to "new heights" and supports Trump's efforts towards a "peaceful resolution of the Ukraine conflict."

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Ties between New Delhi and Washington have been under tension since Trump raised tariffs on most Indian exports to 50% last month in retaliation for New Delhi's continued purchases of Russian oil.

White House officials have accused Indian oil refiners of profiteering and argued that New Delhi's decision to buy Russian crude has helped finance Moscow's war in Ukraine.

But over the last week, the leaders of both countries have offered more conciliatory public statements and said they remain committed to continuing trade negotiations.

And on Tuesday, Indian and US trade officials held discussions in the capital New Delhi.

The US delegation included Brendan Lynch, assistant trade representative for South and Central Asia.

India and the US work to strike a trade deal

Indian and US officials have been holding discussions in the hopes of reaching a trade deal.
Indian and US officials have been holding discussions in the hopes of reaching a trade deal.  © JIM WATSON / AFP

"Acknowledging the enduring importance of bilateral trade between India and the US, the discussions were positive and forward looking covering various aspects of the trade deal," an Indian commerce ministry statement said.

"It was decided to intensify efforts to achieve early conclusion of a mutually beneficial Trade Agreement," it added.

Despite being one of the first few countries to start trade negotiations with Washington, India has so far failed to secure a deal that would ease its tariff burden.

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Exporters in the world's most populous country have already warned of cancelled orders and potentially significant job losses.

Trump's decision to mix issues of war and peace with trade by bumping up duties on most Indian goods from 25% to 50% has also complicated matters.

Experts believe that despite both sides pushing forward, a trade deal still will require tough negotiations.

"Any progress hinges on Washington rolling back the oil-linked 25% duty. Without that, no breakthrough is politically or economically viable," Ajay Srivastava of the Global Trade Research Initiative, a New Delhi-based think-tank, said in a note Tuesday.

Cover photo: Collage: Biju BORO / AFP & SAUL LOEB / AFP

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