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World

Modi, Trump exchange warm words amid tense trade talks

  • The leaders of both countries have offered more conciliatory public statements and said they remain committed to continuing trade negotiations
Published Updated
Photo: Reuters
Photo: Reuters
By

MUMBAI: Indian Prime Minister Narendra Modi received warm congratulations from US President Donald Trump on his birthday Tuesday and praise for his efforts to end Russia’s war in Ukraine, as tense trade talks continued between the two countries.

“Thank you for your support on ending the War between Russia and Ukraine!” Trump said in a post on Truth Social, describing his call with Modi as “wonderful” and praising India’s leader for doing a “tremendous job.”

Modi, posting on X, thanked Trump for his greetings, said he was determined to take bilateral ties to “new heights” and supports Trump’s efforts towards a “peaceful resolution of the Ukraine conflict.”

Ties between New Delhi and Washington have been under tension since Trump raised tariffs on most Indian exports to 50 percent last month in retaliation for New Delhi’s continued purchases of Russian oil.

White House officials have accused Indian oil refiners of profiteering and argued that New Delhi’s decision to buy Russian crude has helped finance Moscow’s war in Ukraine.

But over the last week, the leaders of both countries have offered more conciliatory public statements and said they remain committed to continuing trade negotiations.

And on Tuesday, Indian and US trade officials held discussions in the capital New Delhi.

The US delegation included Brendan Lynch, assistant trade representative for South and Central Asia.

“Acknowledging the enduring importance of bilateral trade between India and the US, the discussions were positive and forward looking covering various aspects of the trade deal,” an Indian commerce ministry statement said.

“It was decided to intensify efforts to achieve early conclusion of a mutually beneficial Trade Agreement,” it added.

Despite being one of the first few countries to start trade negotiations with Washington, India has so far failed to secure a deal that would ease its tariff burden.

Exporters in the world’s most populous country have already warned of cancelled orders and potentially significant job losses.

Trump’s decision to mix issues of war and peace with trade by bumping up duties on most Indian goods from 25 percent to 50 percent has also complicated matters.

Experts believe that despite both sides pushing forward, a trade deal still will require tough negotiations.

“Any progress hinges on Washington rolling back the oil-linked 25 percent duty. Without that, no breakthrough is politically or economically viable,” Ajay Srivastava of the Global Trade Research Initiative, a New Delhi-based think-tank, said in a note Tuesday.

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