India's Modi holds third call with Trump since tariff hike

INDIAN Prime Minister Narendra Modi said he spoke with U.S. President Donald Trump by phone on Thursday, as New Delhi seeks relief from 50% U.S. tariffs on some of the country's key exports to punish India for its Russian oil purchases.

AI Brief

Modi and Trump held a call amid stalled trade talks and rising tariffs on Indian exports.
US pushes India to open markets and reduce Russian oil purchases, while India seeks tariff relief.
Economic tensions grow as exports to the US fall and no trade deal is in sight before year-end.

"We reviewed the progress in our bilateral relations and discussed regional and international developments," Modi said in a post on X.

A White House official confirmed the call took place, but gave no details about what was discussed.

Modi and Trump have spoken three times since Trump doubled tariffs on imports from India to as much as 50%, hitting exports of textiles, chemicals and food items such as shrimp.

Modi described his conversation with Trump as "warm and engaging" and said their countries would continue to work together for global peace, stability and prosperity.

Trade negotiations between the two sides collapsed in late July, after India resisted opening its market for U.S. farm products and declined to acknowledge Trump's role in mediating during an India-Pakistan conflict.

Talks have continued since then, amid signs Indian refiners are cutting Russian oil purchases after the U.S. imposed sanctions on Rosneft and Lukoil, to pressure Moscow over the war in Ukraine.

U.S. Deputy Trade Representative Rick Switzer met with Indian officials during a two-day visit to New Delhi this week, as New Delhi seeks relief from punitive tariffs imposed by Washington over its Russian oil purchases. The U.S. Trade Representative's office had no immediate comment on those meetings.

It was unclear if a trade deal could be hammered out before the end of the year, said one administration official, speaking on condition of anonymity.

Ryan Majerus, a former senior U.S. Commerce Department official now with the King & Spalding law firm, said he expected a deal to be reached with India at some point given its importance in the global economy.

Russian President Vladimir Putin was in New Delhi on a state visit last week. He offered India uninterrupted fuel supplies and challenged U.S. pressure on India to not buy Russian fuel.

Indian exports to the U.S. fell nearly 9% year-on-year in October to US$6.31 billion from US$6.91 billion a year ago, though they were higher than US$5.47 billion in September, Indian government data showed.

Washington is also pushing India to lower tariffs and non-tariff barriers on U.S. goods and open its market to American farm products, including soybean and grain sorghum.