U.S. and India Resume High-Level Trade Talks as Trump and Modi Reconnect:

The United States and India have restarted serious trade and economic discussions, highlighting a renewed push to strengthen bilateral ties. Speaking on Tuesday, White House Press Secretary Karoline Leavitt noted that President Donald Trump “has great respect” for Indian Prime Minister Narendra Modi and that the two leaders maintain frequent contact. Leavitt said the two sides are engaged in “very serious discussions” on trade and economic cooperation — a clear signal that the U.S.–India trade dialogue is moving forward after months of tension. “The President and his trade team continue to be in very serious discussions with India with respect to that topic,” she remarked. Modi and Trump recently met at the Oval Office during Diwali celebrations, where Trump was joined by senior Indian-American officials. That meeting underscored the importance Washington now places on its relationship with Delhi. Leavitt emphasized that the President is “positive and feels very strongly about the India–U.S. relationship.” The White House also praised U.S. Ambassador to India Sergio Gor for his role in Delhi, noting that he is “doing a great job” in carrying out Washington’s agenda in India. The ambassador’s efforts are seen as part of the broader diplomatic push to reset the bilateral agenda. The trade talks come at a crucial moment. Just weeks ago, relations between the two countries hit a low after the U.S. imposed steep tariffs on Indian imports in response to New Delhi’s purchases of Russian oil. The United States first levied a 25 percent tariff on Indian goods on July 30, and followed up a week later with an additional 25 percent — raising the total to 50 percent. The move underscored U.S. frustration over India’s continuing dealings with Moscow despite sweeping sanctions on Russian energy firms. In recent weeks, however, Indian refiners have cut back on their Russian oil purchases after fresh U.S. sanctions targeted key exporters such as Rosneft and Lukoil. This step has opened a path to rebuild trust and move the trade agenda forward. At the same time, Trump publicly expressed his desire to reach a new trade deal with India during a visit to South Korea, signaling a thaw in bilateral relations. His remarks suggest that Washington sees India as a strategic partner in the region, and is willing to engage in fresh negotiations to unlock economic cooperation. The renewed engagement comes amid larger global economic shifts. With supply-chain realignments, shifting energy trade patterns, and India’s emergence as a major global market, both countries have incentives to deepen collaboration. For the U.S., forging a stronger economic link with India helps counterbalance regional rivals, while India benefits from access to technology, investment and markets. However, obstacles remain. The 50 percent tariff on Indian goods still looms large, and many Indian industries are wary of entering sets of negotiations without clear guarantees. India is also cautious about aligning too closely with U.S. energy and strategic objectives that might conflict with its longstanding ties with Russia. Still, the tone coming out of Washington suggests that a new chapter in the U.S.–India trade relationship may be beginning. With frequent leader-level contact between Modi and Trump, and active engagement from trade teams on both sides, the foundations for a revitalised economic partnership are being laid. As trade teams continue their discussions, stakeholders in both countries will be watching closely for the next steps: Will a new framework be put in place? Will tariffs be rolled back? Will investment and technology flows accelerate? The immediate message, however, is clear: The U.S. and India are talking again — and they’re doing so seriously.

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