PM Modi, Trump hold ‘very warm’ talks on trade and defence amid tariff tensions

Amid heightened tariff tensions, Prime Minister Narendra Modi and US President Donald Trump held a “very warm and engaging” telephonic conversation on Thursday, reaffirming commitment to strengthening the Comprehensive Global Strategic Partnership. The discussion came as US negotiators began two-day talks with their Indian counterparts in New Delhi.

Both leaders reviewed the progress of bilateral ties and stressed the need to maintain momentum in enhancing trade cooperation. They also discussed expanding collaboration across critical technologies, defence, energy, security and other priority sectors under the India-US COMPACT framework.

What did the leaders discuss?

Modi said the two leaders exchanged views on key regional and global developments and agreed to work together for “global peace, stability and prosperity.” The call coincided with fresh pressure points in the trade relationship, including a combined 50 per cent US tariff on Indian goods tied to Russian oil imports and Trump’s threat of additional duties on Indian rice.

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In Washington, US Trade Representative Jamieson Greer told the Senate that India has presented its “best ever” market-access offer, though resistance remains over allowing American meat and dairy products into India. A US delegation led by Deputy USTR Rick Switzer is in New Delhi to resolve remaining issues as both sides push to finalise the first tranche of a framework trade pact this year.