Trump Extends Olive Branch to India: PM Modi Calls U.S. a Close Friend as Trade Talks Gain Momentum

September 10, 2025

In a move that could reshape global trade relations, U.S. President Donald Trump and Indian Prime Minister Narendra Modi struck a friendlier tone on September 10, 2025. Both leaders spoke about easing tensions that had built up over months of bitter disagreements on tariffs and trade policies. Their public remarks have raised hopes of a thaw between the two countries, which are among the world’s largest economies.

The exchange, coming after a period of sharp rhetoric and economic strain, marks a significant change in tone. It suggests that despite disputes, both Washington and New Delhi see value in working together.

Trump’s Softened Approach

President Trump, who has long been known for his aggressive stance on trade, surprised many by posting a conciliatory note on Truth Social. He wrote that the U.S. and India were “continuing negotiations to address the trade barriers” and assured that he expected “no difficulty” in finalizing an agreement.

He also called Prime Minister Modi his “very good friend.” This personal touch stood out, considering the strong language Trump had used earlier in the year when announcing steep tariffs on Indian exports. By framing the conversation in terms of friendship and cooperation, Trump signaled that Washington was now open to compromise.

The post quickly gained attention worldwide. Observers noted that Trump’s shift could be linked to growing pressure from American industries that rely on Indian imports, as well as the need to maintain India as a key strategic ally in Asia.

Modi’s Response: Warm and Optimistic

Prime Minister Modi responded just hours later with a message on X (formerly Twitter). He described the U.S. and India as “close friends and natural partners.” He praised the ongoing talks and said both governments were working hard to conclude negotiations soon.

Modi stressed that the discussions could “unlock the limitless potential” of the India-U.S. partnership. His words highlighted India’s view that the relationship goes beyond trade and includes areas like defense, technology, and energy.

He added, “I look forward to my conversation with President Trump to secure a brighter, more prosperous future for both our people.” This showed Modi’s intent to position the talks not just as economic, but as part of a larger strategic bond.

The Backdrop: A Bitter Trade Dispute

The sudden warmth between the two leaders comes after months of strained ties. Earlier in 2025, the U.S. had slapped tariffs of 25% on Indian goods, followed by another 25% linked to India’s purchase of Russian oil. The combined 50% tariff was one of the harshest ever imposed on a major U.S. trading partner.

India hit back strongly, calling the move “unfair and unjustified.” Officials in New Delhi argued that their energy purchases were essential for national security and affordability. The trade dispute threatened to derail cooperation in other sectors, including defense and technology exchanges.

The tariffs had real consequences. Indian exporters, especially in textiles, gems, electronics, and food products, suffered losses. At the same time, American buyers faced higher costs.

In 2024, bilateral trade between India and the U.S. stood at $129 billion, with Washington running a $45.8 billion deficit. For both sides, the stakes are high. A prolonged standoff would damage not only businesses but also long-term strategic trust.

Why This Shift Matters

The friendlier messages exchanged on September 10 hold more than symbolic value. They suggest that both leaders are aware of the risks of continued confrontation.

• Diplomatic reset: Trump’s use of the phrase “very good friend” marks a shift away from confrontation. It shows an attempt to rebuild trust.
• Economic relief: Reducing tariffs would provide breathing space to exporters and manufacturers in both countries. Stock markets have already responded positively to the possibility of improved ties.
• Strategic importance: Both nations share goals in the Indo-Pacific region, cybersecurity, and counter-terrorism. Fixing trade ties could open doors to deeper cooperation in these fields.
• Public messaging: The timing of the exchange also matters. It sends a clear message to domestic and global audiences that neither country wants the dispute to spiral further.

What Comes Next

The two leaders are expected to hold a direct conversation in the coming weeks. According to reports, India’s chief trade negotiator, Rajesh Agarwal, may soon travel to Washington to lead talks.

Sources say that discussions will likely focus on reducing tariffs, improving market access for U.S. agricultural goods, and creating a framework for energy cooperation. If successful, the talks could pave the way for a larger agreement, possibly reviving the earlier ambition of reaching $500 billion in bilateral trade by 2030 under the “Mission 500” plan.

Markets and investors are also watching closely. Any progress could boost business confidence, especially in sectors like IT services, pharmaceuticals, and renewable energy.

A Balancing Act

While the latest messages are positive, experts warn that challenges remain. Trump is known for sudden policy shifts, and his earlier tariffs were imposed without much warning. Similarly, India remains firm on its stance of strategic independence, especially regarding energy imports from Russia.

Yet, the fact that both leaders chose to publicly emphasize friendship and cooperation suggests they want to avoid further escalation. It may also reflect recognition that the U.S. and India, despite differences, need each other in a rapidly changing global order.

Conclusion: A Ray of Hope

The warm exchange between President Trump and Prime Minister Modi on September 10 may not solve all problems immediately, but it offers a ray of hope. After months of tense headlines about tariffs and trade wars, the two leaders have shown willingness to step back and talk.

If these words translate into real agreements, the outcome could strengthen not only trade but also the wider partnership between the two democracies. For now, businesses, diplomats, and citizens in both nations will be watching closely as talks unfold.

The world’s largest democracy and the world’s oldest democracy have often described themselves as “natural partners.” September 10 may be remembered as the day they began moving back toward that path.