US President Donald Trump declared that Washington and New Delhi are set to continue negotiations on dismantling trade barriers that have long complicated bilateral economic ties. Posting on his platform Truth Social, Trump wrote, “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. 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!”
Although no official confirmation has yet come from the White House or India’s Ministry of Commerce, the statement highlights Washington’s intent to reinforce its economic and strategic partnership with New Delhi.
India-US trade relations have been marked by both cooperation and contention. The friction began in 2018 during Trump’s first term, when tariffs were imposed on Indian steel and aluminium, provoking retaliatory duties from New Delhi. Matters escalated further in 2019, when Washington revoked India’s Generalised System of Preferences (GSP) status, stripping away duty-free access to the American market for over $6 billion worth of Indian exports.
Subsequent negotiations, under both Trump and President Joe Biden, failed to deliver a breakthrough, with disagreements persisting over issues such as digital trade rules, data localisation, and tariffs on US agricultural and medical exports.
Despite these frictions, trade between the two nations has grown significantly. Bilateral trade touched $192 billion in 2024, making the United States India’s largest trading partner. The growth is underpinned by cooperation in defence, advanced technology, energy security, and resilient supply chains, areas where Washington increasingly views India as a counterbalance to Chinese dominance in the Indo-Pacific.
Notably, Trump’s latest outreach could also be politically timed. With the 2026 midterm elections approaching, the Indian-American community, an influential voting bloc in several US states, remains an important constituency. By reaffirming his close personal ties with Prime Minister Modi, Trump is signalling stability in bilateral diplomacy and attempting to consolidate domestic political support.
His remark describing Modi as a “very good friend” echoes earlier camaraderie between the two leaders, notably seen during the “Howdy Modi” event in Houston in 2019 and Modi’s reciprocal “Namaste Trump” rally in Ahmedabad in 2020.
Notably, the renewed discussions could revolve around:
1. Restoring GSP benefits for Indian exports.
2. Phased removal of tariffs on steel, aluminium, and agricultural products.
3. Joint frameworks on digital trade, data privacy, and e-commerce.
4. Expanded cooperation in semiconductor manufacturing and supply chains.
Such outcomes would not only ease trade tensions but also strengthen the broader strategic partnership that underpins the Indo-Pacific strategy of both nations.
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