Trump expressed optimism about finalizing a trade deal with India soon.
PM Modi called U.S.-India relations strong, aiming for early trade agreement.
India proposed zero tariffs on U.S. goods amid ongoing tough negotiations.
U.S.-India goods trade hit $129 billion in 2024, despite rising tensions.
With rising hopes of a trade deal between India and U.S, President Donald Trump on Tuesday said that his government is currently carrying on negotiations to address the trade barriers with India and that he would speak to Prime Minister Narendra Modi in the coming weeks.
In a marked shift of tone, Trump said that he looked forward to speaking to PM Modi in the ‘upcoming weeks’ and expressed optimism that they could finalize a trade deal.
Writing a post on Truth Social, he said, "I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries.”
On the other hand, PM Modi reciprocated the optimism in a social media post on Wednesday stating that Washington and New Delhi ‘are close friends and natural partners.’
He further pointed out that both the countries are working to conclude the trade 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," Modi added.
Last week, the U.S. President said that India had offered to reduce its tariffs on U.S. goods to zero, while mentioning that the proposal was late and that India should have reduced its duties years ago.
His remarks came after months of roller-coaster talks that have strained ties between the two country.
Just few days back, India's chief economic adviser warned that Trump's 50% tariffs imposed on Indian exports to the U.S. could trim half a percentage point off India's gross domestic product this year.
For months, the U.S. President had promised that the two sides were close to securing a trade deal, only to double new tariffs on Indian imports to 50%. This has raised several questions about the future of the U.S.-India relationship, which had strengthened in recent years, including during Trump's first term.
Trump imposed the higher tariffs on India after New Delhi refused to stop importing Russian oil in defiance of his efforts to end Moscow's war in Ukraine.
According to a Financial Times report on Tuesday, Trump was pressing the European Union to impose 100% duties on imports from India and China.
The two-way goods trade between the two countries totaled $129 billion in 2024, with a $45.8 billion U.S. trade deficit, according to U.S. Census Bureau data.
