Tariff Truce: Modi-Trump Trade Tensions Over Russian Oil

Indian Prime Minister Narendra Modi and U.S. President Donald Trump have engaged in trade talks as the U.S. imposed higher tariffs on Indian exports. The negotiations stem from India's Russian oil purchases amidst sanctions. Talks have been ongoing, with mixed prospects for a resolution.

Indian Prime Minister Narendra Modi held a telephonic conversation with U.S. President Donald Trump as New Delhi seeks to address the 50% tariffs imposed by Washington on key Indian exports. These tariffs are intended as a punitive measure due to India's purchases of Russian oil.

Modi highlighted the progress in bilateral relations and ongoing discussions on international developments. While the White House confirmed the call, no specifics were disclosed. This marks their third conversation since tariffs were doubled, impacting textiles, chemicals, and food exports.

Trade discussions halted in July due to disagreements over U.S. farm product access and Trump's involvement in mediating India-Pakistan tensions. Despite this, there are indications India is reducing Russian oil imports following U.S. sanctions on Russian entities.

U.S. Deputy Trade Representative Rick Switzer was in New Delhi for talks, but no comments were provided by the U.S. Trade Representative's office. The likelihood of reaching a trade deal before year's end remains uncertain.

India's exports to the U.S. dipped by nearly 9% in October but marginally improved from September figures. Washington is urging India to lower barriers for U.S. goods, specifically in the agricultural sector.

Former U.S. Commerce official Ryan Majerus anticipates a future agreement due to India's global economic significance. Meanwhile, Russian President Putin's recent visit to India included an offer for uninterrupted fuel supplies, challenging U.S. pressures concerning Russian imports.