Trump signals reset in India-US ties, affirms friendship with Modi amid tariff tensions

Despite earlier criticism, US President expresses willingness to mend relations, while PM Modi welcomes his remarks

NewsArc Bureau

Washington DC, September 6, 2025 – US President Donald Trump has softened his stance on India, expressing readiness to reset bilateral ties and affirming his personal friendship with Prime Minister Narendra Modi during a White House press briefing on Friday. The remarks come hours after Trump claimed on his Truth Social platform that the US had “lost” India and Russia to China, a statement that sparked concerns about deteriorating India-US relations. Modi responded on Saturday, appreciating Trump’s sentiments and emphasizing the positive and forward-looking strategic partnership between the two nations.

Trump’s Shift in Tone

During the Friday evening press conference, Trump addressed a question about his earlier Truth Social post, where he had suggested at around 6 AM that India and Russia were aligning with China. Backtracking, he said, “I don’t think we have [lost India]. I’ve been very disappointed that India would be buying so much oil from Russia… We put a very big tariff on India. 50 per cent tariff, very high tariff. I get along very well with Modi, as you know… I’ll always be friends with Modi. He’s a great Prime Minister.” He added that India and the US share a “very special relationship” and there was “nothing to worry about.”

Trump’s comments follow a period of strained relations, primarily due to his imposition of a 50% tariff on Indian exports, including an additional 25% penalty for India’s purchase of Russian oil, which he claims fuels Russia’s war in Ukraine. The tariffs, announced on July 30 and August 6, took effect on August 7 and August 27, respectively. Trump has defended the levies as necessary to address trade imbalances and pressure Russia, but they have drawn sharp criticism in India.

Modi’s Response

On Saturday morning, PM Modi took to X to share Trump’s remarks, stating, “I deeply appreciate and fully support President Trump’s sentiments and views on our relationship. India and the US share a positive and forward-looking strategic partnership.” Modi’s response signals an intent to de-escalate tensions and maintain diplomatic goodwill despite the trade dispute.

Context of the Tariff Dispute

The 50% tariff, comprising a 25% base rate and an additional 25% for India’s Russian oil imports, has been a flashpoint. Trump has argued that India’s high tariffs on US goods—averaging 6.2% compared to the US’s 2.4% on Indian imports, per 2024 World Trade Organization data—justify his actions. He has also accused India of profiting by buying cheap Russian oil and reselling it, a claim India’s foreign ministry has called “unfair, unjustified, and unreasonable,” noting that other nations, including China, import Russian oil without similar penalties.

US Commerce Secretary Howard Lutnick outlined conditions for lifting the extra 25% tariff, including India halting Russian oil purchases, exiting the BRICS grouping, and aligning more closely with the US. However, he expressed optimism about ongoing trade talks, suggesting India could soon join bilateral negotiations.

Criticism and Broader Implications

Trump’s earlier remarks drew sharp criticism, notably from former US National Security Advisor John Bolton, who on September 4 told British media LBC that Trump’s policies had “set US-India relations back decades,” pushing Modi closer to Russia and China. Bolton argued that Trump’s reliance on personal relationships in diplomacy had backfired, a view echoed by analysts who see the tariffs as undermining decades of strategic alignment between the US and India, particularly as a counterweight to China.

Russian President Vladimir Putin also weighed in, urging Trump to stop “threatening” India and China with tariffs, stating that such tactics would not intimidate either nation and could harm their political standing if they yielded. The comments came against the backdrop of the Shanghai Cooperation Organisation (SCO) summit in Tianjin, where Modi, Putin, and Chinese President Xi Jinping displayed camaraderie, signaling a potential realignment amid US trade pressures.

Trade Talks and Future Prospects

Trump described trade negotiations with India and other nations as “going great” but expressed frustration with the European Union’s $3.5 billion fine on Google, calling it discriminatory. He reiterated that tariffs are essential for US economic strength, claiming India offered a “zero tariff” deal on US goods, though he noted it was “getting late” for such concessions. India’s foreign ministry has countered that it proposed a “zero-for-zero” tariff deal on steel, auto components, and pharmaceuticals, but no agreement was reached, leading to the current tariffs.

The US-India relationship, built over decades as a strategic partnership to counter China, faces a critical juncture. The tariffs threaten India’s $87 billion export market to the US, particularly in textiles, pharmaceuticals, and gems. However, Trump’s latest remarks and Modi’s positive response suggest a window for diplomacy, with potential talks at the UN General Assembly in late September offering a chance to stabilize ties.