India-US partnership: Phone call between PM Modi and Trump seen soon; discussions restart in US next week

NEW DELHI: A series of amicable exchanges between Prime Minister Narendra Modi and US President Donald Trump over the past few days signals an ebbing of the diplomatic chill. Trade discussions restart next week, ending the pause following the US’ additional 25% tariff on India over Russian oil purchases. The stage is also set for a telephone conversation between the two leaders in the near future. India and the US are natural partners, Modi said on Wednesday in response to Trump’s conciliatory post, in which he described the Prime Minister as a “dear friend,” and suggested fresh momentum in stalled trade negotiations.“India and the US are close friends," Modi wrote on X. “I am confident our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest.”“I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people,” he said, reciprocating Trump’s message on the upcoming phone call.Early on Wednesday, Trump said on Truth Social that he was “pleased to announce India and the US are continuing negotiations to address the trade barriers between our two nations.” Urging EU Towards 100% Levy“I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks,” the US President said. “I feel certain there will be no difficulty in coming to a successful conclusion for both of our great countries!”Chief trade negotiator Rajesh Agarwal will head to Washington next week to resume talks with US counterparts. The situation was still evolving and it remained to be seen whether the US would offer some relief on tariffs in the coming months, according to a person in the know.Meanwhile, there are reports that Trump has urged European Union officials to consider imposing tariffs of up to 100% on Chinese imports and to extend similar measures to India.Trade tensions have ratcheted up since the US levied 25% tariff on Indian imports, which he later doubled to 50% for India’s refusal to halt Russian oil imports. Several Trump administration officials — including White House adviser Peter Navarro, who is still targeting India and BRICS — alleged that India’s Russian oil purchases were helping Moscow finance the war in Ukraine.POSITIVE MESSAGINGHowever, the recent measured tone adopted by Trump and the US commerce secretary is in sharp contrast.On Saturday, Modi “deeply” appreciated and “fully” reciprocated Trump’s “positive assessment” of the India-US partnership, hours after the US President hailed their “special relationship,” signalling attempts by both sides to dial down tensions.“I will always be friends with Modi, he is a great prime minister, he’s great,” Trump had said. “There is nothing to worry about. We just have moments on occasion.” External affairs minister S Jaishankar had emphasised the point, saying, “PM Modi attaches enormous importance to our partnership with the US. He has always had a very good personal equation with President Trump. But the point is that we remain engaged with the US...”Trump’s praise for the PM on Saturday came less than 24 hours after he commented, “Looks like we-’ve lost India and Russia to the deepest, darkest, China. May they have a long and prosperous future together!”What may have spurred the new moderate tone, according to a person with an understanding of the situation, was the informal huddle among the leaders of Russia, India and China at the Shanghai Cooperation Organisation summit in Tianjin. It had sparked a debate in pro-Trump media as well as the Make America Great Again camp on the future of India-US ties.India has remained firm on its policy of strategic autonomy and maintained that its oil imports from Moscow are based on domestic requirements and the need to keep global oil prices stable.Last week, finance minister Nirmala Sitharaman said India will continue to import crude oil from Russia, stressing that energy decisions are based on national interests and economic logic, not external demands. The Reserve Bank of India has started diversifying its holding in the US treasuries, along with purchase of gold, she said.Over the past 10 days, Trump has, very significantly, not taken credit for brokering the India-Pakistan ceasefire, an issue that has been a big bone of contention with New Delhi.