Trump Certain India-US Tariff Issue Will Be Resolved, Says ‘Look Forward To Speaking To Good Friend Modi’

The comments follow the Trump administration’s recent decision to impose tariffs of up to 50% on Indian goods. The measures included 25% reciprocal tariffs and an additional 25% penalty linked to India’s continued imports of Russian crude oil.

India, which counts the United States as its largest export market, has warned of the potential economic fallout. Chief Economic Adviser V. Anantha Nageswaran said last week the tariffs could trim India’s growth by 0.5–0.6 percentage points this fiscal year. Key sectors such as textiles, gems and jewellery, and automobiles are expected to be affected.

In response, the Indian government has reduced goods and services tax (GST) on certain consumer items and is exploring new export markets to offset losses. Officials have also stressed that India will continue to pursue a balanced approach in its energy purchases.

Trump’s comment signal relations between the two countries are thawing. From calling India ‘a dead economy’ a few weeks ago, he has recently indicated that the US and India will remain close partners.

Business groups have called for restraint. The U.S.-India Business Council recently said there is “too much at stake” in the bilateral relationship. It welcomed the prospect of renewed dialogue between Trump and Modi following warm comments made by the two leaders over the past few days.

Trump and Modi last spoke in June during the G7 summit. Trade has since emerged as the sharpest point of friction, though both sides continue to emphasise broader cooperation in defence, technology, and investment.