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Trump and Modi Signal Restart of U.S.-India Trade Talks Amid Tariff and Oil Dispute

Dale Sandlin Trade

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In a positive turn for international trade relations, President Donald Trump and Indian Prime Minister Narendra Modi have both expressed a commitment to resume U.S.-India trade negotiations, hinting at a possible resolution to recent tensions.

The move comes after weeks of diplomatic strain between the two countries, sparked by disagreements over tariffs and India’s Russian oil purchases. However, this week brought renewed optimism as both leaders shared messages confirming their intent to move forward in partnership.

“I am pleased to announce that India, and the United States of America, are continuing negotiations to address the trade barriers between our two nations,” Trump wrote on social media Tuesday. “I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our great countries!”, Trump posted.

Prime Minister Modi responded shortly after with a similar tone of cooperation and friendship. Modi responded shortly after with a post on X, saying that he was looking forward to speaking with Trump and that the U.S. and India are “close friends and natural partners.”

The announcement is being viewed by analysts as a key step toward repairing and strengthening trade relations between two of the world’s largest democracies. The potential for a new agreement could have wide-reaching impacts, not only for bilateral trade, but also for broader geopolitical dynamics in the Indo-Pacific region.

Business leaders in both countries are hopeful that resumed negotiations will lead to lower trade barriers, improved market access, and greater economic cooperation—especially in sectors such as technology, agriculture, energy, and defense.

As global markets remain volatile, especially with ongoing conflicts and shifting alliances, a revitalized U.S.-India trade partnership could prove mutually beneficial and strategically significant. More details are expected in the coming weeks as both leaders prepare for direct talks.