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PM Modi Holds Talks with Trump, Stresses Boosting Trade Amid Rising Tariff Tensions

Against the backdrop of escalating trade friction between India and the United States, Prime Minister Narendra Modi and US President Donald Trump held a phone discussion on Thursday, reviewing the Comprehensive Global Strategic Partnership between the two nations. The leaders underlined the importance of sustaining momentum in their joint efforts to expand bilateral commerce.

Both expressed contentment over the consistent strengthening of cooperation across multiple areas. The call occurred on the same day American negotiators began two-day discussions with Indian officials in New Delhi.

Meanwhile, a senior US official in Washington informed the Senate that India has presented its most robust proposals to date for a pending bilateral agreement, though the entry of American meat and dairy products into the Indian market continues to be a contentious issue for New Delhi.

Sharing details of his exchange with Trump, Prime Minister Modi posted on X: “Had a very warm and engaging conversation with President Trump. We reviewed the progress in our bilateral relations and discussed regional and international developments.”

He concluded by emphasizing that India and the US “will continue to work together for global peace, stability and prosperity.”

The leaders also explored enhanced cooperation in critical technologies, energy, defence, security, and other key sectors vital to executing the India-US COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st century.

Both exchanged perspectives on regional and global matters, committing to collaborate on shared challenges and mutual interests. They agreed to maintain regular contact to advance the partnership further.

Earlier, during testimony before the Senate Appropriations Committee, US Trade Representative Jamieson Greer described India as a “tough nut to crack” while acknowledging that the Modi government’s recent market-access proposal represents the “best ever” Washington has received.

“There’s resistance in India to certain row crops and other meats and products. Like you said, they’re a very difficult nut to crack. I agree with that 100 per cent,” Greer told lawmakers.

“But they’ve been quite forward leaning. The type of offers they’ve been talking to us about have been the best we’ve ever received, as a country,” he added.

Greer also briefed the Senate that a US delegation is currently in New Delhi this week addressing remaining obstacles, especially India’s reluctance toward American agricultural products, meat, and dairy.

Despite these challenges, he stated Washington now considers India a “viable alternative market” as the US seeks to broaden its trade pathways.

Responding to the Trump administration’s assessment of India’s proposal, Commerce and Industry Minister Piyush Goyal suggested that the US should promptly finalize a free trade agreement with India if Washington is satisfied with New Delhi’s offer.

The delegation, headed by Deputy US Trade Representative Rick Switzer, commenced discussions on Wednesday with India’s lead negotiator and Commerce Department Joint Secretary Darpan Jain. Commerce Secretary Rajesh Agrawal is supervising the talks.

The visit holds significance as both nations work to complete the first phase of a framework trade agreement this year. It follows a sharp increase in trade disputes: the US has imposed a 25 per cent tariff plus an additional 25 per cent penalty on Indian goods connected to New Delhi’s purchase of Russian oil—a cumulative 50 per cent duty that ranks among the steepest levied on any trading partner.

Read More: U.S. President Trump dials PM Modi, wishes him on birthday

Earlier this week, US President Donald Trump warned of potential tariffs on Indian rice after a farmer representative at a White House roundtable raised concerns about dumping by India, China and Thailand. “Why is India allowed to do that? They have to pay tariffs. Do they have an exemption on rice?” Trump asked Treasury Secretary Scott Bessent.

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