On the eve of Indian Prime Minister Narendra Modi’s 75th birthday, President Trump made a special call to extend his good wishes. This gesture appears to signal a potential warming of relations, which have been strained for months due to disagreements over tariffs and conflicting claims about brokering a cease-fire between India and Pakistan.
Following the call, Mr. Trump shared his positive sentiments on Truth Social, stating, ‘Just had a wonderful phone call with my friend, Prime Minister Narendra Modi. I wished him a very Happy Birthday! He is doing a tremendous job.’
This significant phone conversation took place precisely when American trade representatives were in New Delhi, engaging in discussions with India’s Commerce Ministry regarding a potential trade agreement. It marked their first direct communication since June 17, a date when Mr. Modi had informed Mr. Trump that India, not the U.S. president, had directly brokered a cease-fire with Pakistan following a brief conflict in May.
Prime Minister Modi, whose birthday was celebrated on Wednesday, echoed the amicable tone, expressing his gratitude to Mr. Trump on social media for the call and birthday greetings. He affirmed his dedication to ‘taking the India-U.S. Comprehensive and Global Partnership to new heights,’ aligning with President Trump’s stated commitment.
While trade discussions and tariff negotiations have been ongoing since the spring, they recently became entangled in complex geopolitical issues. This occurred after Mr. Trump and other high-ranking U.S. officials accused India of indirectly supporting Russia’s war in Ukraine by continuing to buy significant amounts of Russian oil. As a consequence, late last month, Mr. Trump imposed punitive measures on India, raising tariffs to a staggering 50 percent on all Indian goods imported into the United States.
However, just last week, a noticeable shift occurred as both leaders seemingly rekindled the amiable rapport that once defined their relationship. This renewed warmth sparked optimism that the previous deadlock on trade issues might finally be breaking.
In a positive sign, Mr. Trump publicly shared his eagerness to converse with his ‘very good friend,’ Mr. Modi, last week. He conveyed confidence that ongoing trade negotiations would progress smoothly and expressed certainty that a successful deal between the two nations was within reach.
Further solidifying the improved atmosphere, both leaders used social media this week to publicly confirm India’s support for American initiatives aimed at resolving the conflict in Ukraine.
Despite these positive developments, a comprehensive bilateral trade agreement between India and the United States has remained elusive. A significant hurdle has been India’s reluctance to offer concessions or open up specific sectors of its market to American businesses.
Concluding on a hopeful note, the Indian government announced in a Wednesday news release that bilateral trade discussions had been ‘positive.’ Both nations reportedly agreed to ‘intensify efforts’ to finalize a trade deal promptly.