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Tensions Between Trade Partners: Modi Expected to Meet Trump Next Month

August 13, 2025
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Tensions Between Trade Partners: Modi Expected to Meet Trump Next Month

Photo: Reuters

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The United Nations General Assembly is set to begin on September 8, and according to The Indian Express, Indian Prime Minister Narendra Modi is expected to meet Donald Trump during his trip to New York.

While the main reason for Modi’s visit is to attend the UN session, sources say a key goal is to engage in talks with Trump to resolve ongoing trade and tariff disputes that have strained relations between the two countries.

The tensions escalated after Trump imposed a 25 percent tariff increase on Indian goods in response to India’s continued purchase of Russian oil. This hike brought the total U.S. tariff on Indian exports to 50 percent—one of the highest among Washington’s trading partners.

Trade talks between Washington and New Delhi have collapsed after five rounds of negotiations, largely due to disagreements over opening India’s vast agricultural and dairy markets and its refusal to halt Russian oil imports.

U.S. Treasury Secretary Scott Besant said yesterday that several major trade agreements, including with India, remain unresolved.

Previously, Stephen Miller, Deputy Chief of Staff at the White House and one of Trump’s closest advisors, accused India of “funding Russia’s war in Ukraine” through its oil purchases. “What Trump made very clear is that continued financing of this war by India through buying Russian oil is unacceptable,” Miller stated.

These comments come as Trump steps up pressure on New Delhi to cease energy trade with Moscow.

In response, India has suspended plans to purchase new U.S. military equipment and aircraft.

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