Trump, Modi agree to talk in bid to resolve trade impasse

Core Points - President Trump and Prime Minister Modi have pledged to resume trade negotiations, indicating a potential improvement in U.S.-India relations after recent tensions over tariffs and Russian oil purchases [1][2][3] - Modi expressed confidence that trade negotiations will unlock the potential of the India-U.S. partnership, with teams working to conclude discussions soon [3][4] - The U.S. is under pressure to impose new tariffs on India and China related to Russian oil purchases, complicating the trade discussions [5][6][9] Trade Negotiations - Trump announced ongoing negotiations to address trade barriers between the U.S. and India, expressing optimism for a successful conclusion [2] - Modi emphasized the importance of the trade talks and the close partnership between the two nations [3] - Indian trade negotiators are planning to travel to Washington to resume discussions, potentially as early as next week [3] Tariff Issues - India seeks to address the 25% reciprocal tariff on its exports to the U.S. and the additional 25% levy for purchasing Russian oil [4][11] - The U.S. recently doubled tariffs on many Indian goods to 50% due to India's continued Russian oil purchases, which has raised concerns in New Delhi [7][11] - Economists suggest that the positive signals from both leaders may increase the likelihood of reducing India's tariff rate in the coming months [8] Broader Context - The U.S. is considering joining the EU in imposing new tariffs on India and China, which could further complicate trade negotiations [6][9] - India's significant purchases of discounted Russian oil have been a point of contention, as it remains the largest buyer of Russian seaborne crude [11] - The U.S. is India's largest export market, highlighting the natural trade partnership between the two countries [13]