US President Donald Trump said his administration is actively working to resolve trade barriers with India. He revealed plans to speak with Indian Prime Minister Narendra Modi in the coming weeks. This marks a shift after recent tensions between the two nations, raising hopes for a new trade deal soon.
Trump expressed confidence on social media, saying, “I am sure both great nations can reach a successful agreement.” Modi also shared optimism, calling the US and India “close friends and natural partners.” Modi said teams from both countries are working hard to finalize negotiations quickly.
India and the US are close friends and natural partners. 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… pic.twitter.com/3K9hlJxWcl
— Narendra Modi (@narendramodi) September 10, 2025
The news boosted Indian stock markets, with shares rising more than 0.5 percent after the leaders’ statements. However, tensions remain from recent disputes, including India doubling tariffs on some US imports. The trade disagreements had cast doubts on the future of US-India relations.
Diplomatic strains also surfaced over India’s oil purchases from Russia amid the Ukraine conflict, a claim India denies. Meanwhile, India has recently moved closer to China, with Modi visiting Beijing last month and meeting Chinese and Russian leaders. These developments add complexity to the US-India relationship.
US and Indian trade officials plan to resume face-to-face talks in September after earlier negotiations were paused. The bilateral trade volume reached $129 billion in 2024, with the US running a $45.8 billion deficit. Trump has urged India to cut tariffs sooner, while also pressing the EU to impose higher duties on imports from India and China.