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Modi, Trump Hold Third Conversation Following India’s Tariff Increase

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Indian Prime Minister Narendra Modi said on Thursday that he spoke by phone with US President Donald Trump, as New Delhi continues efforts to secure relief from Washington’s 50 per cent tariffs imposed on several major Indian exports in response to India’s continued purchases of Russian oil.

In a message on X, Modi said the two leaders “reviewed progress in bilateral ties and exchanged views on key regional and global developments.” A White House official confirmed the call took place but did not disclose details of the conversation.

This marks the third discussion between Modi and Trump since the US president raised tariffs on Indian imports to as high as 50pc, affecting sectors including textiles, chemicals, and food products such as shrimp. Modi described the call as “warm and engaging,” adding that India and the United States would keep working together to promote global peace, stability and prosperity.

Trade negotiations between the two countries stalled in late July, after India refused to further open its agricultural market to American farm goods and also declined to reaffirm Trump’s involvement in May’s India-Pakistan tensions. Despite the breakdown, both sides have kept communication channels open, especially amid indications that Indian refiners are reducing their purchases of Russian crude following US sanctions on Rosneft and Lukoil—measures aimed at increasing pressure on Moscow over the war in Ukraine.

US Deputy Trade Representative Rick Switzer held talks with Indian officials during a two-day visit to New Delhi earlier this week, as India continues lobbying for an easing of the punitive duties tied to its Russian oil imports. The Office of the US Trade Representative did not immediately comment on these discussions.

According to one administration official, speaking anonymously, it remains uncertain whether a trade agreement can be finalized before the year ends. However, Ryan Majerus, a former senior official at the US Commerce Department and currently with King & Spalding, said he believes a deal is likely in the long run, given India’s significant role in the global economy.

Russian President Vladimir Putin visited New Delhi last week, offering India a guarantee of uninterrupted energy supplies and pushing back against Washington’s efforts to dissuade India from buying Russian fuel.

Official Indian trade data showed that Indian exports to the United States fell nearly 9pc in October, dropping to $6.31 billion from $6.91bn a year earlier, though the figure remained higher than September’s $5.47bn. Meanwhile, Washington continues pressing New Delhi to reduce tariff and non-tariff barriers on US goods and provide greater market access for American agricultural products, including soybeans and grain sorghum.

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