“India and US are close friends and natural partners”: PM Modi, Trump to ‘unlock limitless potential’ of trade ties

Prime Minister Narendra Modi and President Donald Trump have signalled a resolution to long-standing issues, finalising negotiations at the earliest opportunity.

Modi and Trump look forward to unlocking 'limitless potential'

On Tuesday evening (Washington time), the US President announced that both nations were continuing negotiations to address trade barriers, adding that he looked forward to meeting PM Modi in the coming weeks.

“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. I look forward to speaking with my very good friend, Prime Minister Modi, 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!” Trump said on Truth Social.

Echoing a similar sentiment, PM Modi on Wednesday morning said that teams from both countries were working to conclude discussions swiftly.

“India and the US are close friends and natural partners,” the Indian Prime Minister, on September 10, wrote on X. “ I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership,” he added.

The Indian Prime Minister even expressed hope for unlocking a “limitless” potential of the India-US partnership.

“Our teams are working to conclude these discussions at the earliest. I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people,” PM Modi said on X.

The latest posts by both leaders indicate a significant step towards improving the bilateral relationship, which was strained by the failure to finalise an interim trade deal and by Washington’s decision to impose additional tariffs on India over its purchase of Russian oil.

India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest. I am also looking forward… pic.twitter.com/3K9hlJxWcl

— Narendra Modi (@narendramodi) September 10, 2025

The backstory of tariff wars

In February, PM Modi and President Trump announced their intention to conclude the first phase of a bilateral trade agreement (BTA) by the autumn of 2025.

The terms of reference for the deal were finalised in March, and both parties held five rounds of negotiations until July.

However, New Delhi and Washington failed to finalise an interim agreement, despite Trump’s earlier remarks suggesting a deal was expected. Challenges included India’s resistance to market access for dairy and genetically modified crops, along with its stance of offering limited tariff concessions on automobiles.

As the deal did not take place, the US administration imposed a 25 per cent reciprocal tariff on Indian goods from August 7 and added another 25 per cent tariff on Indian exports, citing New Delhi’s crude oil purchases from Russia.

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