Trump speaks with Modi amid trade deal suspense| India News

India currently faces a 50 per cent tariff from the US. A 25 per cent tariff on India was announced during Trump’s Liberation Day exercise in April 2025. A few weeks after this announcement, Trump announced an additional 25 per cent levy on New Delhi due to its purchase of Russian oil.

US Trade Representative Jamieson Greer had last week praised the India-EU Trade deal, saying that India had come out on top with this deal.

“EU is turning to India to try to find a place. The EU is so trade-dependent that they need other outlets if they can’t keep sending all their stuff to the United States. I’ve looked at some of the details of the deal so far. I think India comes out on top on this, frankly,” he added during his interview with Fox News.

According to Greer, India is set to gain enhanced access to European markets and may also benefit from expanded mobility provisions. He highlighted India’s competitive advantage, pointing to its low-cost labour and growing manufacturing base.

“They get more market access into Europe. It sounds like they have some additional immigration rights. I don’t know for sure, but President von der Leyen of the EU has talked about mobility for Indian workers into Europe. So, I think on net, India’s going to have a heyday with this,” he said.

In Davos on January 21, US President Donald Trump had expressed confidence over the India-US BTA, noting that the two countries are “going to have a good deal”, while praising PM Modi as a close friend and respected leader.

Trump made this comment following his address at the 56th Annual Summit of the World Economic Forum.”I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine, and we are going to have a good deal,” Trump said when asked about the India-US trade deal by Moneycontrol.

PM Narendra Modi had spoken with US President Donald Trump in December last year and the two leaders had agreed to work closely to address shared challenges and advance common interests.

During the telephone conversation, the two leaders reviewed the steady progress in India-U.S. bilateral relations and exchanged views on key regional and global developments.

“Had a very warm and engaging conversation with President Trump. We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the U.S. will continue to work together for global peace, stability and prosperity,” PM Modi had said in a post on X.

The Narendra Modi-Donald Trump phone call comes amid speculation of a potential trade deal announcement between India and the US, despite the uncertainties in ties Trump’s steep tariffs on Indian exports had created.

In another post on Truth Social, US President Donald Trump admired the India Gate situated in New Delhi and vowed to build a Triumph arc in Washington DC.

Before Sergio Gor’s post on X, Donald Trump had taken to Truth Social to share a magazine cover featuring him and Prime Minister Narendra Modi.

India-US talks LIVE updates: US ambassador to India Sergio Gor has revealed that President Donald Trump has spoken with Prime Minister Narendra Modi. Taking to X, the newly appointed US envoy did not reveal the nature of this phone call.