September 10, 2025
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PM Modi and Donald Trump Aim to Unlock Full Trade Potential

10 Sep 2025: Indian and US teams are working to conclude discussions on a trade deal that will unlock the potential of the bilateral partnership, Prime Minister Narendra Modi said on Wednesday in response to President Donald Trump’s remarks that there would be no difficulty in trade negotiations.

This was the second positive exchange between the two leaders on social media in four days amid significant strains in bilateral relations over Trump’s decision to double tariffs on Indian goods to 50% over India’s purchases of Russian energy. The two leaders – who were last in touch on phone in June – also said they looked forward to speaking to each other.

Modi described India and the US as “close friends and natural partners” in a social media post and said: “I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership.

“Our teams are working to conclude these discussions at the earliest. I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people.”

Hours earlier, Trump said in a post on Truth Social that India and the US are “continuing negotiations to address the Trade Barriers between our two Nations”.

He added, “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!”

Soon after Trump’s remarks on social media, the Financial Times reported that Trump had asked the European Union (EU) on Tuesday to impose tariffs of up to 100% on China and India as part of a joint effort to pressure Russia to end its war in Ukraine.

Citing unidentified officials, the report said Trump made the demand when he dialled into a meeting in Washington between senior US and EU officials, who had gathered to discuss the next package of European sanctions against Russia.

Senior members of Trump’s administration such as White House trade adviser Peter Navarro have continued to target India over Russian oil purchases amid the president’s recent outreach on social media. Trump has not targeted China over Russian oil purchases. He sharply hiked tariffs on Chinese goods but reduced them in May and a tariff truce is in effect between the two sides.

During their last exchange on Saturday, Modi reciprocated Trump’s “positive assessment” of bilateral ties on social media after the US president told reporters he would “always be friends” with Modi and pointed to a “special relationship” between the two countries. At the time, this was the first positive exchange between the two leaders since they last spoke on telephone on June 17.

The tone of Trump’s two recent social media posts on India and Modi was markedly different from the criticism that his senior aides have heaped on the country and its leadership in recent days. Navarro has claimed India’s tariffs are costing American jobs and its purchases of Russian oil is “profiteering” that provides funding for Russian President Vladimir Putin’s war machine.

Navarro also said India “must come around at some point” in trade negotiations instead of “laying down with Russia and China”, since that “won’t end well for India”.

While formal trade negotiations between India and the US broke down some weeks ago, Indian officials have said both sides are in touch to take forward a bilateral trade deal that the two countries had earlier said would be concluded in the fall.

The trade negotiations have also been linked to a planned visit to India by Trump for the Quad Summit. While no dates have been finalised for the meeting, the members of Quad – which includes India, Australia, Japan and the US – had been exploring the possibility of holding the summit in November.

During their phone conversation on June 17, which was initiated at Trump’s request after they were unable to meet on the margins of the G7 Summit in Canada, Modi told Trump, against the backdrop of Trump’s repeated claims that he had brokered a ceasefire between India and Pakistan in May, that a trade deal had not figured in any discussions between the Indian and US sides on the hostilities with Pakistan.

Modi also told Trump that there were no discussions on US mediation to end the hostilities, which stopped at Pakistan’s request after an understanding was reached by the Indian and Pakistani militaries through existing channels. Modi also made it clear that India had not accepted any mediation by a third party in the past or present and would not do so in future.

Summary : Prime Minister Modi and former U.S. President Donald Trump expressed optimism about strengthening trade relations, aiming to “unlock limitless potential” and boost economic cooperation between India and the U.S.

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