PM Modi Holds Call With Trump Seeking Tariff Relief From 50% Duty

Prime Minister Narendra Modi said he held a call with US President Donald Trump on Thursday, in a bid to bring down the reciprocal tariffs, which stand at 50%, on some Indian goods. “We reviewed the progress in our bilateral relations and discussed regional and international developments,” Modi said in a post on X.

Since the imposition of tariffs in August, Modi and Trump have spoken thrice on the aggressively high 50% tariff hitting major Indian sectors such as textiles, chemicals, and food items. Modi described the latest conversation with Trump as “warm and engaging” and said New Delhi and Washington would continue to work together for global peace, stability, and prosperity. Trump imposed 25% reciprocal tariffs in early August, followed by a punitive tariff of 25% on India’s oil purchases from Russia. This brought the total tariffs to 50% on Indian exports. As a result, Indian exports to the US fell nearly 9% on-year in October to $6.31 billion from $6.91 billion a year ago.

The call comes at a time when trade negotiations between India and the US remain unresolved, even as officials on both sides continue efforts to revive a deal stalled earlier this year.

India–US Trade Deal

Trade negotiations between the countries collapsed in July after India resisted opening its market to agricultural products from the US. Relations also turned sour as New Delhi denied Trump’s claim of playing a role in mediating during the India–Pakistan conflict. Washington is also pushing India to lower tariffs and non-tariff barriers on US goods.

Multiple rounds of talks have continued, and Commerce Minister Piyush Goyal stated that the bilateral trade deal has entered the final stages. In an effort to roll back the punitive tariff, New Delhi has also sharply cut down its oil and energy imports from Russia.

In the latest development, US Deputy Trade Representative Rick Switzer met with Indian officials during a two-day visit in New Delhi. Officials have not given any signs of a trade deal being finalised by the end of this year. Testifying before the Senate Appropriations Committee, US Trade Representative Jamieson Greer called India “a tough nut to crack” but said the Modi government’s latest market offer is the “best ever” the US has seen. “But they’ve been quite forward-leaning. The type of offers they’ve been talking to us about have been the best we’ve ever received, as a country,” Greer said.

According to Chief Economic Adviser V. Anantha Nageswaran, India and the US have resolved most of their outstanding trade issues, and the final bilateral trade deal will likely be signed by March 2026. “I was hoping something would be done by the end of November, but it has turned out to be elusive,” he noted. “That’s why it is difficult to give a timeline on this. However, I would be surprised if we don’t have it sealed by the end of the financial year,” Nageswaran said, speaking to Bloomberg Television.