Tariffs, Tensions & Tweets: Modi–Trump warm up amid trade strains

Prime Minister Narendra Modi and US President Donald Trump struck a rare positive tone on Wednesday, expressing optimism about “unlocking limitless potential” in India–US trade ties, even as sharp disagreements over tariffs and Russian oil purchases linger in the background.

This marks the second friendly exchange between the two leaders in just four days. Their outreach comes after Trump controversially doubled tariffs on Indian goods to 50%, citing India’s continued energy trade with Russia. The hike has strained relations, with Trump’s advisers repeatedly accusing India of “profiteering” from Russian oil and undermining Western sanctions.

Despite the friction, both Modi and Trump highlighted friendship and cooperation. Modi called India and the US “natural partners,” saying ongoing negotiations could open new opportunities for prosperity. Trump, for his part, assured that there would be “no difficulty” in finalising a trade deal, and hinted at speaking with Modi in the coming weeks.

Behind the scenes, however, US trade adviser Peter Navarro has criticised India sharply, warning that New Delhi “must come around” in talks and stop “lying down with Russia and China.” At the same time, reports suggest Trump has asked the European Union to consider 100% tariffs on both India and China to pressure Moscow over its war in Ukraine.

Still, officials on both sides remain in touch to salvage a trade deal, which could coincide with Trump’s expected visit to India for the Quad Summit later this year. For Modi, the outreach is a chance to soften Trump’s aggressive stance; for Trump, it is a balancing act between tough talk and keeping ties with a key Indo-Pacific partner intact.