New Dawn for Trade? Modi and Trump Edge Closer to Mending India–US Ties

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(Commonwealth_India) In Delhi this week, trade negotiators from India and the United States met once again, seeking common ground after months of tension. The air was thick with anticipation. For many, this wasn’t just another diplomatic meeting; it was an opportunity to alleviate the strain that had affected businesses, workers, and families on both sides of the ocean.

The American team, led by Brendan Lynch, came with a cautious openness, while Indian officials stressed that these talks were not yet a formal round of negotiations. Instead, they described them as conversations—an attempt to see where compromises might be possible. It was a small step, but one that carried outsized importance given how abruptly things had fallen apart.

That collapse came after Donald Trump decided to slap 50% tariffs on Indian exports earlier this year. The move stunned many in India, especially since it targeted goods that support millions of livelihoods—garments, shrimp, gems, and jewellery. For exporters, the sudden jump in duties has been crippling. In Tiruppur, a hub for garment manufacturing, factory owners have spoken about orders drying up. “I’ve had to cut shifts,” one textile producer said recently. “How will I pay my workers if buyers in America keep cancelling?” In coastal towns, shrimp farmers and processors have been left with stockpiles they can’t sell, watching carefully as their margins shrink by the day.

Trade was not the sole focus of the tariffs. Trump’s administration framed them partly as punishment for India’s purchase of Russian oil and weapons. Delhi defended its decision, saying energy security for 1.4 billion people couldn’t be compromised and calling the tariffs unfair. The disagreement spewed sharp words. Trump’s advisers, especially Peter Navarro, took harsh public positions, even suggesting that India’s choices made it complicit in Russia’s war in Ukraine.

The bitterness stung, given that India and the US had spent years nurturing closer ties. But recently, the mood has shifted. Navarro, one of the harshest voices, told a US news channel that “India is coming to the table”, sounding more conciliatory than before. A public exchange between Trump and Prime Minister Modi added a touch of optimism: both men referred to the two nations as “close friends and natural partners.”

Sergio Gor, the man Trump has nominated to be the next US ambassador to India, went further, telling lawmakers in Washington that the deal was “not that far apart” and could be resolved within weeks. His words gave businesses on both sides reason to hope again.

Yet optimism doesn’t erase the challenges. Agriculture remains the hardest knot to untangle. The US has long argued that India should open its vast farm sector, pointing to the potential for American corn, dairy, and meat exports. But in India, farmers have little patience for such demands. In villages across Punjab and Uttar Pradesh, smallholders worry that letting in heavily subsidised American produce would ruin their already fragile incomes. “We can’t compete with US farms that are ten times our size,” a farmer said recently at a local gathering. “If they enter our markets, our children will go hungry.”

For policymakers in Delhi, those voices are impossible to ignore. Food security, rural stability, and national sovereignty are all at stake. Secretary of Commerce Howard Lutnick’s remark last week—wondering aloud why India of all countries won’t buy even a single bushel of American corn—captured the frustration in Washington. However, in India, this comment was perceived as insensitive. Experts here argue that a nation so dependent on agriculture cannot be pressured into risky concessions.

So as negotiators talked behind closed doors in Delhi, the bigger story played out outside: factory workers waiting to see if their shifts would be restored, farmers wondering if their markets would remain protected. Exporters are calculating how long they can survive under tariffs. For them, what happens in these quiet meeting rooms could decide whether their businesses recover or collapse.

The meeting may not yet signal the start of negotiations, but it has given many reasons to believe that progress is being made. Whether it leads to an actual agreement depends on how much both sides are willing to compromise and how they reconcile the clash between their livelihoods and diplomatic interests. For now, the world is watching—and so are millions of ordinary Indians whose lives are tied, directly or indirectly, to what happens next.

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