Indian Prime Minister Narendra Modi has expressed optimism about ongoing trade negotiations with the United States, signaling a possible retreat from earlier hardline positions after President Donald Trump threatened to impose 100% tariffs on Indian exports.
Modi, in a statement shared on social media on September 10, described India and the U.S. as “close friends and natural partners,” and said he was confident the two nations could unlock “limitless potential” through cooperation.
His comments come amid escalating trade tensions that began during the Trump administration, when the president repeatedly criticized India’s trade policies and threatened steep tariffs on Indian goods.
“I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-U.S. partnership,” Modi said. “Our teams are working to conclude these discussions at the earliest.”
India- US Tariffs
Modi’s government had previously resisted American pressure to reduce tariffs and open its markets further, citing the need to protect domestic industries.
But Trump’s hardball tactics, including the threat of tariffs as high as 100% on key Indian products such as motorcycles and agricultural goods, appear to have prompted a more conciliatory approach.
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While the exact details of the ongoing trade talks remain undisclosed, this signals that India may be preparing to make significant concessions, including reduced tariffs on certain US exports and easing of data localization rules that had frustrated American tech firms.
“I am also looking forward to speaking with President Trump,” Modi added. “We will work together to secure a brighter, more prosperous future for both our people.”
Trump, who frequently touted his tough stance on trade during his presidency, had publicly clashed with India over what he called unfair practices.
Trump on Tariffs Talks
Earlier, Trump had announced that his administration had resumed trade negotiations with India.
“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,” he posted on Truth Social.
He also described Prime Minister Narendra Modi as a “very good friend” and said he looks forward to speaking with him “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,” he added.
Trump’s latest statement follows a recent softening of rhetoric from the US side. Earlier on Friday, during a White House press conference, Trump said, “I’ll always be friends with Prime Minister Modi” and called him a “great Prime Minister.”
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“India and the United States have a special relationship. There’s nothing to worry about,” Trump noted.
Duty Free Access to Indian Goods
In 2019, India was removed from the U.S. Generalized System of Preferences (GSP), a program that granted duty-free access to Indian goods worth billions of dollars.
India responded with retaliatory tariffs but faced increasing pressure as the US market became more critical to its export-driven economy.
India has maintained a policy of strategic autonomy, balancing relations between the US, Russia, and China, and economic pragmatism appears to be taking shape.
Though no official trade deal has been announced, both sides have expressed willingness to move forward.
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