US President Donald Trump has signalled calling off exchange of tirades on trade tariffs, with Trump saying that trade negotiations continue and he plans on calling his special friend Indian Prime Minister Narendra Modi. This is seen as a first big sign of normalising a diplomatic friction with Trump hiking tariffs on Indian exports to USA to 50%. He had also said he might hike penalties further in Phase 2 and Phase 3. On 9th September 2025, Trump said he will talk to Modi in `upcoming weeks` and voiced optimism on a trade deal. Some analysts said India and the US were now working on a bilateral trade agreement (BTA) in which some items of concern to both sides would be separated, to be addressed in further negotiations. This implies a big broad free trade agreement (FTA) may be scaled down to a limited BTA to not jeopardise trade and therefore bilateral ties. President Trump said on X quote "I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries” end quote. Prime Minister Modi responded also on social media saying India and US quote "are close friends and natural partners” end quote. Officials confirmed that teams from both sides were engaged to finalise the trade discussions at the earliest. Modi also said he was quote "looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people” end quote. The latest comments made India`s shares up over 0.5%. Officials did not deny reports that Indian and U.S. trade officials are likely to plan visits to continue trade talks in September.
US President Donald Trump has signalled calling off exchange of tirades on trade tariffs, with Trump saying that trade negotiations continue and he plans on calling his special friend Indian Prime Minister Narendra Modi. This is seen as a first big sign of normalising a diplomatic friction with Trump hiking tariffs on Indian exports to USA to 50%. He had also said he might hike penalties further in Phase 2 and Phase 3. On 9th September 2025, Trump said he will talk to Modi in `upcoming weeks` and voiced optimism on a trade deal. Some analysts said India and the US were now working on a bilateral trade agreement (BTA) in which some items of concern to both sides would be separated, to be addressed in further negotiations. This implies a big broad free trade agreement (FTA) may be scaled down to a limited BTA to not jeopardise trade and therefore bilateral ties. President Trump said on X quote "I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries” end quote. Prime Minister Modi responded also on social media saying India and US quote "are close friends and natural partners” end quote. Officials confirmed that teams from both sides were engaged to finalise the trade discussions at the earliest. Modi also said he was quote "looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people” end quote. The latest comments made India`s shares up over 0.5%. Officials did not deny reports that Indian and U.S. trade officials are likely to plan visits to continue trade talks in September.
