President Donald Trump and Indian Prime Minister Narendra Modi announced on Tuesday night, September 9, 2025, that the suspended trade negotiations between their nations would soon resume. The announcement was made on social media, with Trump posting on Tuesday and Modi responding the next day
In a Truth Social post, Trump expressed satisfaction that the United States and India were re-engaging in discussions to address trade barriers. He referred to Modi as a very good friend and expressed confidence in reaching a mutually beneficial agreement.
On X, Modi described India and the U.S. as close friends and natural partners. He expressed optimism that renewed talks would harness the partnership’s potential and anticipated further discussions with Trump in the coming weeks.
This exchange marked a significant shift from recent tensions between the two democracies. Just four days prior, on September 5, Trump had claimed on social media that the U.S. had “lost” India and Russia to China, sharing a photo of Modi with Russian President Vladimir Putin and Chinese President Xi Jinping during their summit on September 1.
Tensions had increased earlier in the summer when the U.S. imposed a 25 percent tariff on Indian exports following the collapse of trade talks. In late August, Trump raised the tariff to 50 percent, citing India’s significant purchases of Russian oil as part of his strategy to pressure Moscow over the Ukraine conflict.
India, the second-largest buyer of Russian oil, opposed the tariffs, noting that China, the top purchaser, and Turkey, the third-largest, were not similarly penalized. The Financial Times reported that Trump urged the European Union to impose tariffs of up to 100 percent on China and India for importing Russian oil.
Trump had also frustrated Indian officials by claiming credit for mediating peace after a brief India-Pakistan clash in May. India maintains a position against third-party mediation with Pakistan, a stance Modi reiterated to Trump in a June phone call.
In late August, Modi highlighted India’s independent foreign policy by sharing images from meetings with Xi Jinping and Vladimir Putin at a conference in China, a move that concerned those preferring distance from China and Russia.
Leading up to Tuesday’s announcement, both nations made conciliatory gestures. India slightly reduced its Russian oil purchases, and Trump nominated Sergio Gor, a close ally, as the next U.S. ambassador to India, seen as a positive development.
Trump stated that he would remain friends with Modi, even if he disapproved of some of Modi’s recent actions. Former trade official Mark Linscott attributed the breakthrough to constructive discussions among senior officials rather than a single concession.
Lisa Curtis, former deputy assistant to the president and senior NSC director for South and Central Asia under Trump, noted that both countries had been moving toward each other and seemed to be building on that momentum.
The renewed engagement follows stalled trade talks due to tariff escalations. Modi stated on X that both negotiating teams were working to conclude discussions promptly, with a commitment to greater prosperity for their citizens.
Linscott cautioned that resolving differences over Russian oil purchases remains challenging but described the developments as a positive sign that both nations seek to avoid confrontation and pursue a new trade agreement.
