Indian Prime Minister Narendra Modi spoke with U.S. President Donald Trump by phone on Thursday, as India seeks relief from 50% tariffs on key exports. These duties were imposed to penalize India for continuing Russian oil purchases.
Modi described the conversation with Trump as “warm and engaging” and said the two leaders reviewed progress in bilateral relations. They also discussed regional and international developments. A White House official confirmed the call but did not provide details on the discussion.
This marks the third conversation between Modi and Trump since Washington increased tariffs on Indian imports. The tariffs affect textiles, chemicals, and food products, including shrimp. Trade negotiations had collapsed in late July after India resisted opening its markets to U.S. farm goods and declined to acknowledge Trump’s role in mediating during an India-Pakistan conflict.
Trade Talks and Oil Sanctions
Despite the earlier deadlock, talks have continued as Indian refiners reportedly reduce Russian oil purchases following U.S. sanctions on Rosneft and Lukoil. These sanctions were aimed at pressuring Moscow over the war in Ukraine.
This week, U.S. Deputy Trade Representative Rick Switzer met Indian officials in New Delhi to discuss tariff relief. The U.S. Trade Representative’s office did not comment on these meetings. It remains uncertain whether a trade deal can be finalized before the end of the year.
Economic Impact and U.S. Demands
Indian exports to the U.S. fell nearly 9% year-on-year in October to $6.31 billion from $6.91 billion. Exports were, however, higher than September’s $5.47 billion.
Washington is also urging India to reduce tariffs and non-tariff barriers on U.S. goods. It wants India to open its market to American farm products, including soybean and grain sorghum.
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Last week, Russian President Vladimir Putin visited New Delhi, offering uninterrupted fuel supplies and challenging U.S. pressure on India. Analysts expect a deal could eventually be reached given India’s growing importance in the global economy.
