U.S.-India Trade Relations Show Signs of Thaw Amid Tariff Negotiations

Former U.S. President Donald TRUMP has publicly commended India for reducing its Russian oil imports, framing it as a positive development in ongoing trade discussions. Speaking about his rapport with Indian Prime Minister Narendra Modi, Trump referred to him as "his friend" and a "great man," despite recent strains in bilateral ties over tariffs, visa fees, and India's continued purchases of Russian crude.

The geopolitical friction has been exacerbated by Trump's unsubstantiated claim of brokering an India-Pakistan peace deal. Analysts note the lack of personal chemistry between the two leaders has further weakened the alliance at a critical juncture.

India currently faces punishing 50% tariffs on exports to the U.S. – higher than China's 47% rate – while its professionals confront $100,000 H1B visa costs. Oxford Economics' Alexandra Hermann suggests a potential breakthrough, with both sides anticipating a deal within weeks that could slash Indian tariffs to 20%, aligning it with Southeast Asian competitors though still above the 15% enjoyed by Japan and South Korea.