Trade deal to world peace: Here’s what PM Modi and Trump discussed on their third phone call as tariff row deepens

The timing of the Modi–Trump conversation is notable because a US delegation is currently in New Delhi for talks on a bilateral trade deal.

As talk grows about a possible trade deal between India and the US, Prime Minister Narendra Modi and US President Donald Trump spoke on the phone on Thursday. They discussed how the two countries can work more closely in different fields. According to an official statement, the two leaders looked at the progress made in India–US ties and talked about boosting cooperation in areas like trade, new technologies, energy, defence, and security.

The statement said both leaders were happy with how the partnership has strengthened. It also highlighted that they specifically discussed trade and agreed that it is important to keep pushing efforts to increase business between the two nations.

Their conversation comes a few months after Trump raised tariffs on Indian goods to 50 per cent, saying it was due to India’s energy dealings with Russia.

What did Modi and Trump discuss over phone call?

PM Modi shared a few points from his “warm and engaging” phone call with Donald Trump in a post on Thursday. He said they reviewed progress in India–US relations and talked about important issues around the region and the world. “India and the US will keep working together for global peace, stability and prosperity,” he wrote.

According to media reports, the call also covered several other topics, including:

• Keeping up the momentum to improve trade between the two countries
• Expanding cooperation in key areas like advanced technology, energy, defence and security
• Moving forward with the India–US COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology)
• Regional and global issues of shared concern
• Continued strengthening of the overall partnership

Both leaders also exchanged views on major international developments and agreed to work together on challenges that affect both nations. They said they would remain in touch to keep pushing the partnership forward.

Trump Tariffs relations with India

Relations between India and the United States have cooled in recent months. Tensions grew after Washington announced an extra 25 per cent penalty on India for buying Russian oil and on top of the earlier 25 per cent tariff, a move that was introduced in July and enforced from August 27.

India has repeatedly said these tariffs are unfair. Officials argue the logic is hard to understand because China buys far more Russian oil, and the European Union is the biggest buyer of Russian LNG.

The phone call between PM Modi and President Trump also came shortly after Vladimir Putin’s high-profile visit to India. The visit resulted in several agreements, but what drew the most attention was the friendly chemistry between Putin and Modi, including the moment the two leaders shared a car ride from the airport to the prime minister’s residence.

President Trump’s approach to India has faced criticism from several American leaders, who say his actions are driving New Delhi closer to Moscow. This week, a Democratic lawmaker even held up a photo of Modi and Putin in a car together during a Congress session while criticising Trump’s foreign policy.

“Trump’s policies towards India can only be described as hurting ourselves for no reason, and they are causing serious long-term damage to the trust and understanding between our countries,” said Sydney Kamlager-Dove.

The timing of the Modi–Trump conversation is notable because a US delegation is currently in New Delhi for talks on a bilateral trade deal.