‘Trump Calls, Modi Doesn’t Pick Up’: German Newspaper Explains How India Is Dealing With US On Trade

Prime Minister Narendra Modi reportedly avoided calls from US President Donald Trump four times in recent weeks in the wake of ongoing India-US trade tensions, according to a German publication. 

Trump, frustrated by India’s limited market access for the US and its oil trade with Russia, imposed steep export tariffs that have come into effect from Wednesday. India now faces a whopping 50% tariff rate from the US that is expected to hurt the country’s export-driven industries.

Beyond just tariffs, Trump has also made remarks against India, calling it a “dead economy”. This marks a stark contrast to the warm exchange between the two leaders as recently as February, when PM Modi visited the United States. PM Modi, reportedly offended by Trump’s comments and actions, has since declined to take his calls, according to a report by German newspaper Frankfurter Allgemeine Zeitung (FAZ).

Despite this, on Tuesday, Trump reiterated his claims that his mediation talks helped resolve the India-Pakistan conflict that was triggered in the aftermath of the Pahalgam attack. India has maintained that it has never accepted any third-party mediation over issues with Pakistan.

The report added that while Trump follows a certain script during trade fights, PM Modi has pushed back against his tactics.

“A US delegation had been scheduled to travel to New Delhi this week to hammer out a trade pact in time for Trump to brandish it as proof of his superior deal-making. Now, the delegation isn’t coming. Instead, on Wednesday, US tariffs of 50% on Indian imports will take effect,” the report said.

According to the German newspaper, PM Modi’s refusal to take Trump’s calls reflects “strategic caution”. Modi is wary of being blindsided. The report cited experts to suggest that Trump’s Indo-Pacific strategy is showing cracks as India is unwilling to fully align against China.

“Roughly one-fifth of India’s exports, mainly clothing, gems, and auto parts, go to the US. Economists estimate that instead of growing 6.5% a year, India’s economy may slow to 5.5% under Trump’s tariffs. But domestically, Modi cannot afford to be seen as bowing to Trump, especially since Indian public sentiment has sharply turned against him,” it said.

The situation has been further aggravated by Trump’s recent pro-Pakistan moves. He first claimed to broker an India-Pakistan ceasefire in May. The White House’s move to host Pakistan’s army chief Asim Munir in June added to the tensions.

Amid these developments, PM Modi is scheduled to visit China this week to attend the Shanghai Cooperation Organisation summit in Tianjin. This will mark his first visit to China in seven years. Experts said this shift reflects India’s strategic goals, not just a reaction to tariffs.

“India needs China more than China needs India. This realignment, he argues, is not just a tactical move or reflex to US tariffs but reflects ‘India’s strategic determination’. In a world where the US is in retreat, India sees ‘shared strategic’ interests with China,” the publication cited an expert as saying.

However, for India, the reconciliation with China is not without its risks. Some disputes between the two Asian powers have been resolved recently, but trade imbalance and border tensions remain a challenge. Moreover, the Chinese view of India’s past leanings towards the US could affect the recent progress.