US President Donald Trump has announced that his administration is actively negotiating to reduce trade barriers with India and plans to speak with Prime Minister Narendra Modi soon, raising hopes for a potential agreement after weeks of tension.

In a notable change of tone, Trump expressed his eagerness to talk to Modi in the “upcoming weeks” and conveyed optimism about finalising a trade deal. In a social media post he stated, “I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries”.

Modi echoed this optimism highlighting the close friendship and natural partnership between Washington and New Delhi. He noted that teams both nations are working diligently to expedite the trade discussions.

“I am also looking forward to speaking with President Trump. We will work together to secure a brighter more prosperous future for both people”, said Modi.

Last week, Trump indicated that India had proposed reducing tariffs on US goods to zero, although he criticised the proposal as being overdue, suggesting that India should have lowered its duties years ago.

This more positive messaging comes after months of fluctuating negotiations that have restrained US India relations. India’s chief economic adviser recently warned that Trump’s 50% tariffs on US goods to zero, although he criticised the proposal as being overdue, suggesting that India should have lowered its duties years ago.

Trump has previously stated that the two sides were close to reaching a deal, but he escalated tensions by imposing new tariffs on Indian imports in response to New Delhi’s continued purchase of Russian oil amidst the ongoing conflict in Ukraine.

Additionally, the Financial Times reported that Trump is urging the European Union to impose 100% duties on imports from India and China.

In 2024, US-India two way goods trade reached $129 billion, with the US facing a trade deficit of $45.8 billion, according to data from the US Census Bureau.