Modi–Trump Hold Third High-Level Call as U.S. Tariffs Strain India–US Trade Relations

Indian Prime Minister Narendra Modi and U.S. President Donald Trump engaged in their third telephone conversation since Washington imposed steep new tariffs on Indian exports, as both sides seek to manage strained trade relations while maintaining broader cooperation.

According to official statements and posts on social media platform X, Modi said the discussion was “warm and engaging” and focused on reviewing progress in bilateral ties. The leaders also talked about regional and global developments, with emphasis on sustaining cooperation on issues beyond trade. 

The phone call comes in the context of U.S. tariffs of up to 50% on a wide range of Indian goods, including textiles, chemicals, and shrimp—a move that has hit Indian exporters and complicated talks toward a bilateral trade deal. Modi and Trump have now spoken three times since those duties were raised, underscoring both sides’ interest in dialogue despite economic tensions. 

A U.S. official confirmed the call took place but did not provide details on outcomes, signaling that negotiations remain ongoing and unresolved.

Trade Talks in Focus

The high tariffs were introduced after trade negotiations collapsed in July 2025, when India resisted U.S. demands to open its agricultural market more widely and declined to recognize Trump’s role in mediating during regional conflicts. These talks have not yet resumed in full force.

Meanwhile, U.S. Deputy Trade Representative Rick Switzer is in New Delhi for two days of trade discussions aimed at addressing U.S. concerns, including India’s agricultural barriers and its continued purchases of Russian oil—a focal point in Washington’s justification for punitive tariffs.

Analysts say the repeated calls show both leaders want to keep channels open, even as substantive agreement on trade has not been reached. India is trying to balance its strategic partnership with the U.S. against domestic policy priorities and global alignments, especially regarding energy and food security

Political and Economic Context

Tariffs have already dented India’s exports; data reported earlier this year showed a decline in shipments to the U.S. after duties doubled, prompting concerns among exporters and political circles in New Delhi. 

In India, the government has maintained that it wants constructive engagement with the U.S. without compromising on core national interests. In Washington, officials continue to push for greater market access for American agricultural products