Hinting at a possible easing of trade tensions, just weeks after imposing the steep 50 per cent tariffs on Indian products, US President Donald Trump in a social media post Wednesday said that India and American are “continuing negotiations to address the trade barriers”. Responding to his post hours later, Prime Minister Narendra Modi said both countries “will work together to secure a brighter, more prosperous future”.
“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!” Trump said in a post on Truth Social.
“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 to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people,” Modi said on X, responding to Trump’s post.
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 likely thaw in trade tensions comes at a time when Indian exporters are hit by the 50 per cent tariffs in the US market and have expressed fears of job losses. To ease the pressure on exporters, the government is also working on a package to address the immediate liquidity crunch faced by manufacturers.
IEEPA Ruling Appeal
Meanwhile, the US Supreme Court on Tuesday granted the Trump administration’s request to hear its appeal of lower court rulings that many of President Trump’s wide-ranging tariffs imposed using the International Emergency Economic Powers Act (IEEPA) are illegal. The court said it would hear oral arguments in the first week of November.
The lower court’s ruling affects the 25 per cent reciprocal tariffs imposed by the US on India, as well as the additional 25 per cent tariffs on imports of Russian oil, as Trump announced these under IEEPA. However, sectoral tariffs such as the 50 per cent duty on steel and aluminium, where Trump has used Section 232 of the Trade Expansion Act of 1962, face no legal challenges.
The India-US negotiations for a trade deal, which began in February after Modi visited the United States, came to a halt when the US negotiators’ scheduled visit to India in the second half of August was cancelled after Trump announced a 50 per cent tariff on Indian products.
In his Independence Day speech, Prime Minister Narendra Modi said India would not compromise on the well-being of its farmers, fishermen and cattle reares amid the standoff with the US over access for American products in India’s agriculture and dairy market.
© The Indian Express Pvt Ltd
