U.S. President Donald Trump and Indian Prime Minister Narendra Modi held another phone conversation as negotiators from both countries continue efforts to revive a long delayed trade agreement. According to Bloomberg, the call comes at a sensitive moment in bilateral relations, with talks ongoing but no clear resolution yet in sight despite months of negotiations.
Modi described the conversation as constructive and positive, noting that both leaders reviewed progress in U.S.–India relations and exchanged views on regional and global developments. Posting on X, Modi said the two countries would continue working together to support global peace, stability, and prosperity. The discussion marked the fourth call between the leaders since Trump imposed 50 percent tariffs on Indian goods in August, a move that significantly strained trade ties.
While diplomatic engagement has increased, trade negotiators remain divided on key issues. Bloomberg reported that discussions this week in New Delhi failed to produce a breakthrough, even as officials from both sides emphasized the importance of maintaining momentum. Indian officials said the leaders highlighted cooperation in critical technologies, defense, and security as priority areas alongside trade.
U.S. Ambassador to India Sergio Gor described the exchange as a strong conversation between close partners, though Modi notably avoided using language he had previously employed to describe Trump personally. An Indian government official told reporters that both sides acknowledged the need to push negotiations forward, particularly as Indian industries continue to feel the impact of U.S. tariffs.
Geopolitical tensions have further complicated negotiations. Trump has pressured India to curb its purchases of Russian oil, arguing that the trade supports Russia’s war in Ukraine. India has maintained that dialogue and diplomacy are the preferred path to ending the conflict, while continuing its economic and security ties with Moscow. Modi recently hosted Russian President Vladimir Putin in New Delhi, underscoring India’s strategic balancing act between global powers.
Relations have also been tested by Trump’s repeated claims that he helped broker a ceasefire between India and Pakistan earlier this year. New Delhi has firmly denied any external mediation, while Pakistan has publicly credited Trump’s role. These statements have added diplomatic friction at a time when both countries are attempting to reset ties.
According to Bloomberg, two separate U.S. delegations visited New Delhi this week to advance trade discussions. Meetings were held between U.S. and Indian officials covering commerce, diplomacy, and economic policy. Indian leaders remain hopeful that an interim agreement to reduce import taxes could be reached before the end of the year, after earlier attempts stalled in the fall.
India’s chief economic adviser, V. Anantha Nageswaran, told Bloomberg Television that most trade related issues have been resolved and suggested a deal could still be finalized by March. However, uncertainty remains as Trump continues to send mixed signals, including fresh warnings about possible tariffs on Indian rice exports. India is the world’s largest rice exporter and a major supplier to the U.S., making the issue particularly sensitive for New Delhi.
According to Bloomberg, the coming months will be critical in determining whether sustained diplomacy can overcome lingering disputes and deliver a long awaited trade agreement between the two countries.
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