Trump, Modi speak as US, India restart trade talks in Delhi

US President Donald Trump spoke with Prime Minister Narendra Modi on Tuesday, 16 September, ahead of the Indian leader’s 75th birthday, a call that coincided with the two governments resuming trade talks in New Delhi after weeks of strain over tariffs and India’s purchases of Russian oil.

Trump said he had a “wonderful” conversation and praised Modi’s leadership: “Narendra: Thank you for your support on ending the War between Russia and Ukraine!”

Modi thanked Trump for the greetings and said India supports “initiatives towards a peaceful resolution of the Ukraine conflict.”

Thank you, my friend, President Trump, for your phone call and warm greetings on my 75th birthday. Like you, I am also fully committed to taking the India-US Comprehensive and Global Partnership to new heights. We support your initiatives towards a peaceful resolution of the…

— Narendra Modi (@narendramodi) September 16, 2025

The exchange marked the leaders’ first publicly known call in about three months and set a more conciliatory tone after a bruising August.

The outreach came as a US team led by Brendan Lynch, the assistant US trade representative for South and Central Asia, met Indian officials headed by Rajesh Agrawal, the commerce ministry’s special secretary and chief negotiator.

Both sides described the discussions as “positive” and “forward-looking,” and said they would intensify efforts to conclude a mutually beneficial agreement at the earliest.

A government readout said the session covered various aspects of the proposed trade deal and that a formal sixth round of negotiations is now expected.

Lynch’s visit is seen to have restored momentum that was lost late last month when a planned negotiating round in New Delhi was scrapped after Washington doubled duties on many Indian goods.

Those levies, which took effect on 27 August, added 25 percentage points to existing tariffs, lifting total rates on some products to about 50%.

The White House framed the step as a response to Indian trade barriers and to New Delhi’s continued intake of discounted Russian crude since the war in Ukraine began in 2022.

The escalation rattled exporters and darkened prospects for a near-term trade deal.

India’s commerce ministry has kept its language careful but upbeat since the Lynch meetings, emphasizing the “enduring importance” of bilateral commerce and the desire to close an agreement quickly.

Lynch had a positive meeting with Agrawal on the next steps in the negotiations, with the talks running into several hours at Vanijya Bhawan, the commerce ministry’s headquarters, as the two sides reviewed sticking points and sequencing for a formal next round, The Indian Express reported.

The tariff shock has already shown up in trade data. India’s exports to the US fell to $6.86 billion in August from $8.01 billion in July.

Exporter groups have warned that the full impact will be felt from September onward as the higher duties filter through purchase orders and delivery schedules. The sectors most exposed are labor-intensive manufacturers that depend on US demand.

Key differences remain unchanged. Washington has pressed India to curb its purchases of Russian crude and to open politically sensitive farm and dairy markets to US producers. New Delhi has resisted large concessions on agriculture and has defended its energy policy as a matter of affordability and security.

Finance minister Nirmala Sitharaman said this month that India would continue to buy Russian oil as long as it is economical, underscoring the challenge of linking oil purchases to trade relief.

The geopolitical backdrop is complicated as in the run-up to the New Delhi meetings, the US urged Group of Seven partners and the European Union to consider imposing tariffs on countries that keep buying Russian oil, explicitly naming India and China.

That push forms part of a broader effort to constrict Moscow’s revenue while avoiding a price spike in global crude. Some G7 capitals have been cautious about the idea of penal tariffs on third countries, highlighting differences over tools even as allies coordinate on sanctions.

For now, both capitals appear to be testing whether they can compartmentalize. The call between Trump and Modi changed the temperature, if not the facts. Trump wrote that Modi is “doing a tremendous job,” while Modi said India is “fully committed to taking the India-US Comprehensive and Global Partnership to new heights.”

Neither side, however, specified what “support” for ending the war entails. Nor did they outline steps to unwind the tariff increases or to bridge the gap on oil.

On the trade track, officials are preparing the ground for a sixth round by narrowing lists of tariff lines and standards issues that could form a first-phase package.

The focus is reportedly on achievable items that can be ring-fenced from the oil dispute, an approach that mirrors past efforts to salvage progress during broader disagreements.

India’s emphasis on “early conclusion” suggests that working groups will now meet with greater frequency, including virtually, to preserve cadence. The presence of Lynch as the senior US point person gives the process a clear channel back to the Office of the US Trade Representative, which will be critical if any market-access trade-offs require fast political sign-off.

The timing of Lynch’s visit is also notable as after the August tariff move, Delhi had canceled a US delegation visit scheduled for 25 to 29 August.

The talks this week reversed that slide and brought both teams back to the table before the quarterly trade cycle picks up.

A durable fix will hinge on the two governments’ tariff calculus. If Washington keeps duties near 50% for an extended period, more Indian exporters will be squeezed, raising domestic pressure on Modi’s team to secure relief.

If New Delhi materially reduces Russian oil purchases, it might ease a central US demand but would raise costs at home and complicate refinery logistics built around discounted Urals flows.

In parallel, the US is balancing its Russia policy with a fragile trade truce with Beijing, a factor that has so far limited additional US tariffs on Chinese goods even as Washington prods allies to move first. That balancing act underscores why the New Delhi talks stressed process and tone, not breakthroughs.