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Modi, Trump Discuss Trade, Gaza Truce in Fresh Call

Prime Minister Narendra Modi on Thursday reviewed progress in India-US trade negotiations during a phone call with US President Donald Trump, marking a further thaw in ties after months of strain. Modi also congratulated Trump on brokering a peace deal in Gaza, calling it a “historic achievement.”

“Spoke to my friend, President Trump, and congratulated him on the success of the historic Gaza peace plan. Also reviewed the good progress achieved in trade negotiations. Agreed to stay in close touch over the coming weeks,” Modi said on social media platform X.

This was the second call in a month between the two leaders, who had not spoken for nearly three months following a contentious June conversation over US involvement in India-Pakistan tensions during the G7 summit in Canada.

Relations between New Delhi and Washington have been frosty since June, when Trump imposed 50% tariffs on Indian exports, citing trade imbalances and oil imports from Russia. The tariffs took effect in late August. Trump also sought closer ties with Pakistan, hosting Field Marshal Asim Munir and Prime Minister Shehbaz Sharif at the White House in recent weeks.

The US further tightened visa rules, imposing a $100,000 fee for H-1B applicants and revoking thousands of student visas. It also cancelled India’s sanctions waiver for operations at Iran’s Chabahar Port, complicating New Delhi’s Central Asia strategy.

Despite tensions, recent gestures — including Trump’s birthday wishes to Modi in September and the Senate’s confirmation of Sergio Gor as the next US Ambassador to India — have helped restart dialogue.

Trade talks remain the main sticking point, particularly over agricultural and dairy market access. Both sides had aimed to conclude the first phase of a trade pact by late 2025. India, officials say, continues to insist on a “mutually beneficial” deal, rather than one skewed toward Washington’s demands.