US and India Work to Repair Ties Amid Tariff Issues

Strategic Insights -

US President Donald Trump and Prime Minister Narendra Modi had a phone call to discuss trade-related issues, as the two countries aim to repair their strained relationship. Despite a low point in their ties over US tariffs on Indian goods, Trump and Modi expressed unity against terrorism. The phone call was the third between the two leaders since September 16, and it follows a meeting between Modi and US ambassador-designate Sergio Gor in New Delhi. The conversation covered trade, including Trump's repeated claims that India would not "buy much oil from Russia" and his assertion that trade and tariffs helped end hostilities between India and Pakistan in May.

Key Takeaways:

  • The US and India are working to repair their strained relationship, with a focus on trade and combating terrorism.
  • The two countries had a low point in their ties over US tariffs on Indian goods, but expressed unity against terrorism during the phone call.
  • India's energy purchases are guided by the objective of safeguarding the interests of the Indian consumer in a volatile energy scenario.
  • The twin goals of India's energy policy are ensuring stable energy prices and secured supplies.
  • Russia has emerged as a major energy supplier for India, with New Delhi ramping up purchases of discounted Russian crude.
  • India has faced pressure from the US to stop buying Russian oil, but there are indications that state-run refiners have reduced purchases, not stopped all procurements.
  • Trump and Modi discussed trade during the phone call, with Trump claiming that India would not "buy much oil from Russia".
  • The two leaders have had a series of high-level meetings and phone calls since September 16, including a meeting with US ambassador-designate Sergio Gor in New Delhi.

Statistics:

  • The US and India have had a strained relationship over US tariffs on Indian goods.
  • The two countries have had three phone calls since September 16, with the one on October 23 focusing on trade and combating terrorism.
  • India ramped up purchases of discounted Russian crude after the West slapped sanctions on Moscow over the invasion of Ukraine in 2022.
  • India's energy purchases are guided by the objective of safeguarding the interests of the Indian consumer in a volatile energy scenario.
  • The twin goals of India's energy policy are ensuring stable energy prices and secured supplies.

Sources:

  • "US President Donald Trump and Prime Minister Narendra Modi discussed trade-related issues during a phone call on Tuesday as the two countries work to repair ties that have hit their lowest point in nearly two decades over unprecedented US tariffs on Indian goods." (HT Digital Content Services with permission from HT Lucknow)
  • "People familiar with the matter said Pakistan and the hostilities in May did not figure in Tuesday's phone call between Trump and Modi." (HT Digital Content Services with permission from HT Lucknow)
  • "India's attacks on terrorist infrastructure in Pakistan on May 7 in retaliation for the Pahalgam terror attack triggered four days of intense fighting that ended when military officials of the two countries reached an understanding on May 10." (HT Digital Content Services with permission from HT Lucknow)