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Trump, Modi Talk Amid Tariff Row; Trade Deal Hopes Rise

  • By Thetripurapost Web Desk, Washington
  • Sep 19, 2025
  • 15

Amid prospects of renewed trade negotiations between India and the United States, President Donald Trump on Thursday said he remains “very close” to India and Prime Minister Narendra Modi, despite recently imposing heavy sanctions on the country for buying oil from Russia.

At a joint press conference in London with British Prime Minister Keir Starmer, Trump was asked whether Washington would pressure nations importing Russian oil. Trump responded:

“I’m very close to India and Prime Minister Modi. I spoke with him recently and wished him a happy birthday. He responded beautifully. We have a very good relationship, but I imposed sanctions on him.”

 

Trump emphasized that he had also sanctioned European countries and China over the same issue, adding:

“I’m willing to do more, but not if the people I’m fighting for are buying oil from Russia.”

 

The remarks came just days after Trump telephoned Modi at 10:53 p.m. IST on September 16, becoming the first world leader to congratulate the Indian Prime Minister on his birthday. Trump later posted on his social platform Truthout that Modi was “doing a wonderful job” and thanked him for his “help in ending the war between Russia and Ukraine.”

In response, Modi wrote on X (formerly Twitter):

“Thank you, my friend, President Trump. Like you, I want to take our partnership to new heights. We support a peaceful resolution of the Ukraine conflict.”

 

This was their first conversation in 40 days, following Trump’s August 27 decision to impose 50% tariffs on Indian goods as punishment for India’s continued purchase of Russian oil. Tensions had spiked since then, with German daily FAZ reporting that Modi had declined Trump’s calls at least four times in the run-up to the tariffs.

Trade Talks Back on Track?

Speculation about a thaw in relations grew after Modi’s birthday call. On the same day, U.S. Representative Brendan Lynch met Indian Commerce Department Special Representative Rajesh Aggarwal in New Delhi for nearly seven hours. Both sides described the meeting as “positive,” raising expectations that stalled bilateral trade talks could resume.

Five rounds of negotiations have been completed so far. The sixth round, scheduled for late August, was postponed following the tariff escalation.

Legal Battle Over Tariffs

The sanctions are also being tested in U.S. courts. Trump has defended them, claiming they were essential to prevent economic damage to America and to pressure India away from Russian energy dependence. He even argued before the Supreme Court that the tariffs were designed to help end the Russia-Ukraine war.

U.S. Conditions for Relief

U.S. Industry Secretary Howard Lutnick outlined three conditions for lifting the extra 25% surcharge:

1. India must stop buying Russian oil.


2. India must withdraw from BRICS.


3. India must explicitly back the U.S. in global economic alignment.

 

“If you want to be a bridge between Russia and China, do so,” Lutnick said. “But either support the dollar or the United States. Support your biggest customer or pay 50% tariffs.” Still, he expressed optimism that India would “soon enter into negotiations for a bilateral trade agreement.”