US President Donald Trump on Wednesday said he had spoken with Prime Minister Narendra Modi about trade, signalling renewed momentum in talks between the two countries. "Just spoke to Modi today on trade. We're working on some great deal with India," Trump said, adding that "India is doing very well."
The remarks come amid reports that the two nations are closing in on a bilateral trade agreement that could sharply reduce tariffs on Indian exports and expand cooperation in energy and agriculture.
Trump also said Modi "won't be buying too much oil from Russia," suggesting that India is likely to scale back its Russian crude imports as part of the broader understanding being worked out.
According to an Indian government official, both sides have narrowed their differences and are making "solid progress" toward a trade deal aimed at lowering punitive tariffs. Indian negotiators reportedly had positive meetings in Washington last week.
Trump's latest outreach marks a softer tone after months of criticism over India's discounted oil purchases from Russia. India is already paying 50% tariff on its export to the US. Out of the tariff rate, 25% is a penalty for Russian oil purchase. Trump has repeated many times that the penalties will remain in place if India does not reduce the purchase of Russian oil.
While the US President said India would gradually reduce Russian imports, New Delhi maintained that energy purchases would continue to prioritise consumer interests.
Russia currently supplies about one-third of India's crude imports, but officials have indicated that state refiners are exploring higher volumes of US oil.
On the economic front, Trump renewed his criticism of the U.S. Federal Reserve, saying, "We have a real stiff at the Federal Reserve. Rates are too high."
He added that Washington would issue updates "over the next two days on the Russia–Ukraine situation," indicating possible policy announcements related to the ongoing conflict.
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