Trump tariff: Will wait and watch how trade talks pan out, says officials

NEW DELHI: While the recent social media exchanges between PM Modi and President Donald Trump are being seen as signs of a possible recovery in India-US ties, Indian govt believes not enough attention has been paid to the "positive steps" in the relationship since Trump took charge.

These measures, according to govt sources, have led to a strong momentum in cooperation across political, defence, strategic, economic, technological, and people-to-people domains.


According to sources, who spoke on condition of anonymity, the next or sixth round of negotiations for a bilateral trade agreement (BTA) is likely to commence soon.

On the contentious issue of trade, on which India is facing 50% tariff for its purchase of oil from Russia, the announcement of Mission 500 to double bilateral trade to $500 billion by 2030 and finalisation of terms of reference for BTA negotiations announced in April are seen as constructive steps.

Govt sources also sounded a word of caution about the "thaw" as they said India will wait to see how the trade negotiations turn out. The govt is also closely following reports that Trump, while backing trade negotiations with India, has asked the EU to impose 100% tariffs on India and China to force Russian President Vladimir Putin to end the Ukraine war.

While both leaders have agreed to have a conversation soon, a bilateral meeting might be possible only next month in Malaysia on the margins of the Asean summit and East Asia summit, if Trump chooses to participate.

According to Indian authorities, despite the differences over trade, bilateral cooperation has continued in areas like defence and security, energy security and technology. Officials point to the ongoing talks for the finalisation of a framework for the US-India Major Defense Partnership in the 21st Century and also negotiations underway for a Reciprocal Defense Procurement (RDP) Agreement.

However, whether the Quad summit can take place in Nov will still depend on how soon the two countries can resolve their differences to reach a trade agreement. Trump may not want to visit India if that doesn't happen. Despite the suspense over the summit, sources said, Quad has continued to work towards strengthening its agenda, including through the launch of Quad Critical Minerals Initiative.

There's focus now on upcoming Quad Initiatives like: Counter-terrorism workshops in Sept, Quad Ports of the Future Partnership Conference in Mumbai next month and also the Indo-Pacific Logistics Network Field Training Exercise (FTX) under Operation Christmas Drop (Dec 2025).

On counterterrorism, extradition of Tahawwur Rana from the US to India, US designation of The Resistance Front as a Foreign Terrorist Organisation and the facilitation of the return of FBI fugitive Cindy Rodriguez Singh to US by India are cited as examples of ongoing cooperation.

"Both sides have reaffirmed their commitment to a comprehensive global strategic partnership anchored in trust, mutual respect, and common interests," said a source on the condition of anonymity.