President Donald Trump has reaffirmed his administration’s intent to strike a new trade deal with India, signalling renewed engagement between Washington and New Delhi after months of diplomatic strain. 

Speaking in Seoul last week, the US leader said that he was eager to reach a mutually beneficial agreement with India — an overture widely seen as a step towards restoring economic and strategic balance in bilateral ties.

According to White House spokeswoman Karoline Leavitt, President Trump maintains regular communication with Indian Prime Minister Narendra Modi. She confirmed that high-level trade negotiations between the two governments are ongoing and described the discussions as “very serious and constructive.”

The White House emphasised that the President holds Prime Minister Modi in high regard and values his leadership on global economic issues.

Bilateral relations between the two democracies had faced turbulence earlier this year when President Trump imposed a tariff hike on Indian goods, doubling import duties to 50 per cent.

The move was framed as a response to India’s continued purchases of Russian crude, despite Washington’s mounting sanctions against Moscow over its actions in Ukraine and subsequent defiance of Western oil price caps.

In recent weeks, India has begun to recalibrate its energy procurement strategy following stringent US sanctions on Russia’s principal oil exporters, Rosneft and Lukoil. Indian refiners have notably scaled back imports from these companies, indicating a willingness to cooperate more closely with American restrictions while diversifying energy supplies from non-Russian sources.

Observers note that a recalibrated trade framework could restore investor confidence and potentially strengthen both countries’ positions in sectors such as clean energy, electronics manufacturing, and defence production.

American trade officials have also hinted at exploring new tariff structures and market access mechanisms that could support joint supply-chain resilience initiatives.

Washington’s renewed outreach reflects the administration’s recognition of India’s pivotal role in the Indo-Pacific economic landscape. The Trump government views closer commercial and strategic engagement with New Delhi as essential to counterbalance China’s influence across Asia.

Indian policy circles, meanwhile, interpret Trump’s conciliatory tone as an opportunity to secure favourable trade terms and deepen cooperation in technology, critical minerals, and infrastructure investment.

Diplomatic analysts believe that the success of these talks could redefine economic relations between the two nations, anchoring them in long-term mutual growth rather than transactional disputes.

With both sides prioritising domestic industrial expansion and strategic autonomy, the upcoming rounds of negotiations will be viewed as a test of pragmatism and partnership under the evolving geopolitical order.

Based On Reuters Report