India’s Modi holds third call with Trump since tariff hike

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US President Donald Trump and India’s Prime Minister Narendra Modi talk as they arrive for a joint news conference after bilateral talks at Hyderabad House in New Delhi, India, February 25, 2020. — Reuters/File
US President Donald Trump and India’s Prime Minister Narendra Modi talk as they arrive for a joint news conference after bilateral talks at Hyderabad House in New Delhi, India, February 25, 2020. — Reuters/File

Indian Prime Minister Narendra Modi said he spoke with US President Donald Trump by phone on Thursday, as New Delhi seeks relief from 50 per cent US tariffs on some of the country’s key exports to punish India for its Russian oil purchases.

“We reviewed the progress in our bilateral relations and discussed regional and international developments,” Modi said in a post on X.

A White House official confirmed the call took place, but gave no details about what was discussed.

Modi and Trump have spoken three times since Trump doubled tariffs on imports from India to as much as 50pc, hitting exports of textiles, chemicals and food items such as shrimp.

Modi described his conversation with Trump as “warm and engaging” and said their countries would continue to work together for global peace, stability and prosperity.

Trade negotiations between the two sides collapsed in late July, after India resisted opening its market for US farm products and declined to acknowledge Trump’s role in mediating during a conflict between India and Pakistan in May.

Talks have continued since then, amid signs Indian refiners are cutting Russian oil purchases after the US imposed sanctions on Rosneft and Lukoil, to pressure Moscow over the war in Ukraine.

US Deputy Trade Representative Rick Switzer met with Indian officials during a two-day visit to New Delhi this week, as New Delhi seeks relief from punitive tariffs imposed by Washington over its Russian oil purchases.

The US Trade Representative’s office had no immediate comment on those meetings.

It was unclear if a trade deal could be hammered out before the end of the year, said one administration official, speaking on condition of anonymity.

Ryan Majerus, a former senior US Commerce Department official now with the King & Spalding law firm, said he expected a deal to be reached with India at some point given its importance in the global economy.

Russian President Vladimir Putin was in New Delhi on a state visit last week. He offered India uninterrupted fuel supplies and challenged US pressure on India to not buy Russian fuel.

Indian exports to the US fell nearly 9pc year-on-year in October to $6.31 billion from $6.91bn a year ago, though they were higher than $5.47bn in September, Indian government data showed.

Washington is also pushing India to lower tariffs and non-tariff barriers on US goods and open its market to American farm products, including soybean and grain sorghum.

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