Page 4 - The Indian EYE 111425

COVER STORY NOVEMBER 14, 2025 | The Indian Eye 4

TRADE & TARIFF WAR

TRUMP SOFTENS

POSTURE

After months of friction over tariffs and sanctions, Donald Trump’s recent remarks

praising PM Modi hint at a thaw in Washington’s stance toward India — just as
New Delhi accelerates its global free trade outreach from Brussels to Wellington

OUR BUREAU

New Delhi / Washington, DC / Wellington
nited States President Don-
ald Trump’s renewed warmth
Utoward India comes amid a
quiet recalibration of his protection-
ist policies. At a White House press
briefing this week, Trump called
Prime Minister Narendra Modi “a
great man and a friend,” suggesting
he might visit India next year. The
tone marked a notable departure
from the hostility of previous months,
when his administration imposed
heavy tariffs on Indian goods, citing
oil purchases from Russia and alleged
trade imbalances.
“Talks with Prime Minister Modi
are going great,” Trump said. “He
largely stopped buying from Russia.
He’s a friend of mine, and he wants
me to go there.” The statement,
wrapped in praise but pregnant with
geopolitical signaling, came just
weeks after The New York Times
reported that Trump had dropped
plans to attend the Quad Summit
following his tariff escalation.
Washington insiders now see this
as part of a broader recalibration. President Donald Trump may travel to India next year to meet PM Modi and resolve the trade and tariff issue between the two countries (File photo)
Having weaponized tariffs to assert
U.S. dominance in global trade, even celebrated Diwali with senior iterated that its energy decisions are praise for India’s reduced Russian
Trump appears to be softening his Indian-American officials at the Oval based on national interest, consum- imports was a signal: tariffs may give
stance toward India — a market too Office. The gesture, though symbol- er welfare, and diversification. “It way to incentives if India aligns with
large and strategically vital to alien- ic, underlined a pragmatic shift: New has been our consistent priority to U.S. strategic priorities.
ate, especially as China looms over Delhi’s economic importance is be- safeguard the interests of the Indian Donald Trump’s long-running
the Indo-Pacific. Behind the rheto- ing recognized not through sanctions, consumer,” said MEA spokesperson tariff war against China has largely
ric, officials from both countries have but through inclusion. Randhir Jaiswal. “Our import poli- failed to produce its intended re-
quietly reopened trade channels. Trump’s earlier decision to im- cies are guided by this objective.” sults. After years of aggressive duties
White House Press Secretary pose a 50 percent tariff, including The firmness seems to have paid and trade threats, Beijing’s exports
Karoline Leavitt described Trump’s 25 percent additional duties, over off. Washington, realizing the futili- remain resilient while U.S. manu-
position as “positive and strongly India’s Russian oil purchases had ty of coercion, is now courting India facturers continue to absorb high-
committed to the India-U.S. rela- soured ties. Yet, India stood firm. through dialogue — and possibly, er costs. At his recent meeting with
tionship,” noting that the President The Ministry of External Affairs re- reciprocal trade openings. Trump’s Continued on next page... >>

www.TheIndianEYE.com