Prime Minister Narendra Modi and US President Donald Trump held a key phone call on Thursday to discuss a broad range of issues, including bilateral trade, just months after a significant downturn in relations caused by increased US tariffs on Indian imports.
The conversation took place while negotiations on trade and tariffs between the two nations are still underway. The tariffs were imposed by the US, partly in response to India’s energy trade with Russia.
Key Topics of Discussion:
Sources familiar with the conversation told HT that the following topics were discussed, in addition to PM Modi’s summary on social media:
| Category | Topics Discussed |
| Trade & Economic | Sustaining momentum to enhance bilateral trade. |
| Security & Defense | Expanding cooperation in critical technologies, energy, defense, and security. |
| Strategic Framework | Implementation of the India-US COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology). |
| Global Affairs | Reviewing progress in bilateral relations and discussing regional and international developments. |
The leaders agreed to work closely to address shared challenges and advance common interests, reflecting the desire to improve ties.
Context: Tariffs and Trade Tensions
The phone call comes after bilateral ties nosedived in August when the Trump administration doubled tariffs on Indian imports to 50%. Half of these tariffs were specifically aimed at penalizing India’s oil trade with Russia, which US officials criticized for “profiteering” amidst the invasion of Ukraine.
However, the tone between the leaders has softened recently:
- Turnaround in Sentiment: A month after the tariffs, President Trump stated he would “always be friends” with PM Modi and highlighted a “special relationship.” PM Modi reciprocated, calling the partnership “very positive and forward-looking.”
- Trump’s Claim on Russian Oil: In October, Trump made a bold assertion that PM Modi had “assured” him during a previous interaction that India would soon stop its oil trade with Russia, calling it “a big step.”
PM Modi described his conversation with Trump on Thursday as “warm and engaging,” stating via a tweet that the two countries “will continue to work together for global peace, stability and prosperity.”