Hinting at a doable easing of commerce tensions, simply weeks after imposing the steep 50 per cent tariffs on Indian merchandise, US President Donald Trump in a social media put up Wednesday mentioned that India and American are “persevering with negotiations to handle the commerce boundaries”. Responding to his put up hours later, Prime Minister Narendra Modi mentioned each international locations “will work collectively to safe a brighter, extra affluent future”.
“I’m happy to announce that India and the USA of America are persevering with negotiations to handle the Commerce Limitations between our two Nations. I look ahead to talking with my excellent pal, Prime Minister Modi, within the upcoming weeks. I really feel sure that there will likely be no problem in coming to a profitable conclusion for each of our Nice Nations!” Trump mentioned in a put up on Reality Social.
“India and the US are shut associates and pure companions. I’m assured that our commerce negotiations will pave the best way for unlocking the limitless potential of the India-US partnership. Our groups are working to conclude these discussions on the earliest. I’m additionally trying ahead to talking with President Trump. We are going to work collectively to safe a brighter, extra affluent future for each our individuals,” Modi mentioned on X, responding to Trump’s put up.
India and the US are shut associates and pure companions. I’m assured that our commerce negotiations will pave the best way for unlocking the limitless potential of the India-US partnership. Our groups are working to conclude these discussions on the earliest. I’m additionally trying ahead… pic.twitter.com/3K9hlJxWcl
— Narendra Modi (@narendramodi) September 10, 2025
The probably thaw in commerce tensions comes at a time when Indian exporters are hit by the 50 per cent tariffs within the US market and have expressed fears of job losses. To ease the strain on exporters, the federal government can be engaged on a package deal to handle the speedy liquidity crunch confronted by producers.
IEEPA Ruling Enchantment
In the meantime, the US Supreme Court docket on Tuesday granted the Trump administration’s request to listen to its attraction of decrease courtroom rulings that a lot of President Trump’s wide-ranging tariffs imposed utilizing the Worldwide Emergency Financial Powers Act (IEEPA) are unlawful. The courtroom mentioned it might hear oral arguments within the first week of November.
The decrease courtroom’s ruling impacts the 25 per cent reciprocal tariffs imposed by the US on India, in addition to the extra 25 per cent tariffs on imports of Russian oil, as Trump introduced these below IEEPA. Nevertheless, sectoral tariffs such because the 50 per cent obligation on metal and aluminium, the place Trump has used Part 232 of the Commerce Enlargement Act of 1962, face no authorized challenges.
The India-US negotiations for a commerce deal, which started in February after Modi visited the USA, got here to a halt when the US negotiators’ scheduled go to to India within the second half of August was cancelled after Trump introduced a 50 per cent tariff on Indian merchandise.
In his Independence Day speech, Prime Minister Narendra Modi mentioned India wouldn’t compromise on the well-being of its farmers, fishermen and cattle reares amid the standoff with the US over entry for American merchandise in India’s agriculture and dairy market.
© The Indian Categorical Pvt Ltd