Modi–Trump Hold Phone Talks Amid Intensifying Trade Negotiations; US Calls India a “Difficult Nut to Crack” as Tariff Concerns Rise
Prime Minister Narendra Modi and US President Donald Trump spoke over the phone on Thursday at a critical juncture in ongoing India–US trade negotiations, with officials from both sides engaged in a fresh round of discussions in New Delhi.
In a post on X, Modi said the two leaders reviewed the steady progress in bilateral ties and exchanged views on global and regional developments.
“India and the US will continue to work together for global peace, stability and prosperity,” the Prime Minister wrote, signalling that despite friction on trade, strategic cooperation between the two nations remains strong.
US Trade Official: India Is a “Difficult Nut to Crack”
The conversation took place just a day after USTR official Jamieson Greer described India as a “difficult nut to crack” during remarks in Washington.
His comment came even as he acknowledged that the US had received its “best” trade proposal from India—suggesting both optimism and frustration within American negotiating circles.
A two-day round of technical-level talks began Wednesday in New Delhi as negotiators attempt to revive momentum after stalled progress earlier this year.
Agriculture at the Core of the Dispute
Washington has been eager to redirect US agricultural exports—especially corn and soybeans—away from China and into emerging markets like India.
But India has remained firm on shielding its vast population of small and marginal farmers from undue foreign competition.
This core disagreement over farm imports had caused the collapse of negotiations in August, when neither side was willing to shift significantly on tariff or market-access demands.
Trump Warns of New Tariffs on Indian Rice
The tensions escalated earlier in the week when President Trump warned that he could impose new tariffs on Indian rice, accusing India of dumping rice into the US market at unfairly low prices.
The warning came after a Louisiana-based farm representative complained during a White House roundtable that American farmers were suffering because of rice dumping by India, China, and Thailand.
Trump responded forcefully:
“This must end. Tariffs will take care of it.”
The US already imposes a 50% tariff—its highest rate for any country—on Indian goods. Any additional duties could further strain trade relations at a time when negotiations are delicately poised.
A Diplomatic Balancing Act
Thursday’s Modi–Trump call appears aimed at maintaining political momentum and stability in bilateral ties, even as both sides navigate difficult negotiations.
The tone of the conversation, as described by Modi, suggests attempts to keep geopolitical cooperation insulated from trade turbulence.
However, with Washington signalling impatience and India holding its ground on protecting domestic agriculture, the road to a comprehensive trade arrangement remains fraught—and potentially lengthy.
