The contours of the deal are still being finalised, the person added. But intense negotiations are underway in what is emerging to be tough political call. The proposed deal could lower US tariffs on Indian exports to 15% from 50% now, ET has learnt. Modi’s X post following the phone call with Trump was measured.
Growing US-Pak Ties
The post makes with no mention of a trade deal or Russian energy imports. “Thank you, President Trump, for your phone call and warm Diwali greetings. On this festival of lights, may our two great democracies continue to illuminate the world with hope and stand united against terrorism in all its forms,” the PM wrote on X.
The remark assumes significance amid the US’ growing security ties with Pakistan. Earlier, Trump lit a lamp at a special Diwali event at the White House and told reporters that he has had a conversation with Modi. He called Modi a “great friend” and said India and the US are working on “some great deals.” Trump also reiterated his claims of assurance from Modi over India’s Russian oil imports, and that he stopped the India-Pakistan conflict in May.
People cited above, however, clarified that the issue of Pakistan was not discussed in Wednesday’s telephone call, contrary to the US president’s claim. Curiously, Trump also moderated his position on Russian oil imports — from claiming that Modi had assured him of stopping them to only reducing them.
India may raise US oil imports
“We just have a very good relationship, and he’s not going to buy much oil from Russia,” Trump said. “He wants to see that war end as much as with Russia and Ukraine. And as you know, they’re not going to be buying too much oil. So, they’ve got it way back, and they’re continuing to cut it way back.”At present, Russia supplies roughly 34% of India’s crude oil imports, while around 10% of the country’s oil and gas requirements (by value) come from the US. India may increase oil imports from the US. The Diwali event at the White House was attended by the Indian ambassador to the US, Vinay Kwatra, besides FBI chief Kash Patel, intelligence head Tulsi Gabbard, new US Ambassador to India Sergio Gor, and some Indian American business leaders. Modi and Trump last met in February when the prime minister travelled to Washington for a bilateral summit. They had announced a roadmap for expanding partnership. But after that, the relationship started to turn sour amid Trump’s repeated claims that he stopped the India-Pakistan standoff. Then Trump imposed steep 50% tariffs on India, including 25% as sanctions for buying Russian oil.
Off late, ties have shown signs of improvement with three phone calls between Modi and Trump, including Diwali greetings. Modi also endorsed Trump’s Gaza peace plan and his meeting with the Russian President Vladimir Putin.