Trump, Modi exchange warm words amid tense trade talks

MUMBAI - Indian Prime Minister Narendra Modi received a warm congratulatory message from US President Donald Trump on his birthday on Sept 16 and praise for his efforts to end Russia’s war in Ukraine, as tense trade talks continued between the two countries.

“Thank you for your support on ending the war between Russia and Ukraine!” Mr Trump said in a post on his Truth Social platform, describing his call with Mr Modi as “wonderful” and praising India’s leader for doing a “tremendous job”.

Mr Modi, posting on social media platform X, thanked Mr Trump for his greetings. He added that he was determined to take bilateral ties to “new heights” and supports Mr Trump’s efforts towards a “peaceful resolution of the Ukraine conflict”.

Ties between New Delhi and Washington have been under tension since Mr Trump

raised tariffs on most Indian exports to 50 per cent

in August in retaliation for New Delhi’s continued purchases of Russian oil.

White House officials have accused Indian oil refiners of profiteering and have argued that New Delhi’s decision to buy Russian crude has helped finance

Moscow’s war in Ukraine.

But over the last week, the leaders of both countries have offered more conciliatory public statements and said they remain committed to continuing trade negotiations.

On Sept 16, Indian and US trade officials held discussions in New Delhi.

The US delegation included Mr Brendan Lynch, assistant trade representative for South and Central Asia.

“Acknowledging the enduring importance of bilateral trade between India and the US, the discussions were positive and forward looking, covering various aspects of the trade deal,” an Indian Commerce Ministry statement said.

“It was decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement,” it added.

Despite being one of the first few countries to start trade negotiations with Washington, India has so far failed to secure a deal that would ease its tariff burden.

Exporters in the world’s most populous country have already warned of cancelled orders and potentially

significant job losses.

Mr Trump’s decision to mix issues of war and peace with trade by bumping up duties on most Indian goods from 25 per cent to 50 per cent has also complicated matters.

Experts believe that despite both sides pushing forward, a trade deal still will require tough negotiations.

Mr Ajay Srivastava from the Global Trade Research Initiative, a New Delhi-based think-tank, said in a note on Sept 16: “Any progress hinges on Washington rolling back the oil-linked 25 per cent duty. Without that, no breakthrough is politically or economically viable.” AFP