After months of friction over tariffs and sanctions, Donald Trump’s recent remarks praising Prime Minister Modi suggest a thaw in Washington’s stance on India – just as New Delhi accelerates its global free trade policy, from Brussels to Wellington.
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New Delhi / Washington, DC / Wellington
US President Donald Trump’s renewed warmth towards India comes in a context of discreet recalibration of his protectionist policy. At a White House press briefing this week, Trump called Prime Minister Narendra Modi a “great man and friend”, suggesting he might visit India next year. The tone marks a notable departure from the hostility of previous months, when his administration imposed heavy tariffs on Indian goods, citing oil purchases from Russia and alleged trade imbalances.
“Discussions with Prime Minister Modi are going very well,” Trump said. “He’s pretty much stopped buying from Russia. He’s a friend of mine and he wants me to go there.” The statement, shrouded in praise but full of geopolitical signals, came just weeks after The New York Times reported that Trump abandoned plans to attend the Quad Summit following his tariff hike.
Washington insiders now see this as part of a broader recalibration. After using tariffs as a weapon to assert American dominance in global trade, Trump appears to be softening his stance on India – a market too large and strategically vital to alienate, especially as China looms over the Indo-Pacific. Behind this rhetoric, officials from both countries have quietly reopened trade channels.
White House Press Secretary Karoline Leavitt called Trump’s stance “positive and strongly committed to India-US relations”, noting that the president even celebrated Diwali with senior India-US officials in the Oval Office. This gesture, although symbolic, underlines a pragmatic change: the economic importance of New Delhi is recognized not through sanctions, but through inclusion.
Trump’s earlier decision to impose 50% tariffs, including an additional 25%, on India’s purchases of Russian oil had soured relations. Yet India held on. The Ministry of Foreign Affairs reiterated that its energy decisions are based on national interest, consumer welfare and diversification. “Safeguarding the interests of the Indian consumer has always been our priority,” MEA spokesperson Randhir Jaiswal said. “Our import policies are guided by this objective.”
The firmness seems to have paid off. Washington, aware of the futility of coercion, is now courting India through dialogue – and possibly through reciprocal trade overtures. Trump’s praise of reducing India’s Russian imports was a signal that tariffs could give way to incentives if India aligned with US strategic priorities.
Donald Trump’s long-running tariff war against China has largely failed to produce the desired results. After years of aggressive tariffs and trade threats, Beijing’s exports remain resilient while U.S. manufacturers continue to absorb higher costs. In his recent meeting with Chinese President Xi Jinping, Trump appeared to walk back much of his earlier rhetoric, offering concessions on technology imports and signaling an openness to new negotiations on the supply of semiconductors. Analysts noted that the moves, dubbed “strategic pragmatism,” marked a quiet retreat from its once-hardline tariff stance, underscoring the limited influence Washington has gained after years of economic confrontation.
Despite Trump’s complacent tone, his recent visit to Asia failed to produce substantial results. He touted “major victories” on trade and security, but regional partners remained cautious, wary of his transactional diplomacy and erratic tariff policy. In Tokyo and Seoul, allies have offered symbolic gestures but little binding commitment. Southeast Asian countries, meanwhile, have deepened ties with Beijing amid doubts about the reliability of the United States. Even its work in India has been overshadowed by skepticism about its trade record. Behind the optics of photo ops and lofty promises, Trump’s Asia trip revealed a leader who struggled to turn spectacle into strategic substance.
While Trump rethinks his tariff strategy, India is quietly weaving a global network of free trade partnerships – a sign of confidence and diversification. Trade and Industry Minister Piyush Goyal’s recent trip to New Zealand reaffirmed this new approach. Both sides are working towards the early conclusion of a “balanced, comprehensive and mutually beneficial” FTA covering goods, services, investment and technology.
The India-New Zealand Business Forum in Auckland brought together government and private sector leaders to explore new partnerships in agriculture, education, tourism and space cooperation. Prime Minister Christopher Luxon hailed the Indian diaspora as a “living bridge” between the two nations. For New Delhi, the deal is about more than just market access: it’s about building resilient trade corridors across the Indo-Pacific.
Goyal’s efforts highlight a broader strategy: India’s trade diversification to counter the volatility of tariffs from the West. After signing groundbreaking deals with Australia and the United Arab Emirates and accelerating negotiations with the United Kingdom and the European Union, New Delhi now views the Indo-Pacific as a shared economic theater rather than a geopolitical flashpoint.
In Brussels, Goyal’s meeting with EU Trade Commissioner Maroš Šefčovič marked major progress towards the long-awaited India-EU FTA. Negotiators from both sides spent the first week of November resolving unresolved issues on goods, services and rules of origin. “Both sides are committed to achieving balanced and mutually beneficial outcomes,” the Commerce Ministry noted, emphasizing sustainability, technology and investment flows as key pillars.
This emerging pact reflects a new maturity in India-EU relations. Over the past year, the EU trade delegation to India has expanded, with senior officials from Belgium, Portugal and Finland explicitly supporting a rapid conclusion of an FTA. In Helsinki, India and Finland reaffirmed their commitment to digitalization, clean technology and AI collaboration, areas that could be integrated into the EU-wide trade architecture. Finland even reiterated its support for India’s permanent seat on the UN Security Council, a sign of growing political confidence.
Portugal, celebrating 50 years of renewed diplomatic relations with India, echoed the same sentiment. The two countries agreed to accelerate ongoing bilateral agreements in the areas of defence, renewable energy and education, framing their relations within the framework of a wider partnership between the EU and India. Belgium, meanwhile, hosted the third round of Foreign Ministry consultations, examining cooperation in the areas of trade, innovation and renewable energy. Belgian and Indian officials reaffirmed their “shared commitment to advancing a comprehensive, balanced, fair and mutually beneficial India-EU free trade agreement”.
This sustained pace of high-level consultations reveals a clear trend: India is no longer waiting for changes in Washington’s mood on tariffs to dictate its global economic agenda. Instead, it is building a multipolar trade network – one that reduces overreliance on any single bloc while expanding its strategic footprint.
For Europe, alignment with India offers protection against excessive economic dependence on China. For India, the FTA framework provides access to markets and advanced technologies, while preserving the policy space needed to protect local industries.
Trump’s softened tone thus reaches an inflection point. Its tariff wars with China and the EU have shown the limits of economic coercion. In this context, India’s confident pursuit of open trade partnerships demonstrates the appeal of calibrated globalization – a model that balances sovereignty and integration.
For New Delhi, the message is clear: commercial diplomacy is the new geopolitics. The whirlwind of negotiations with Europe and Oceania shows an India that is both pragmatic and ambitious – ready to negotiate on an equal footing, but unwilling to buckle under pressure.
In this changing landscape, Trump’s allusions to reconciliation are as much about recognition as they are about reparation. India, whose economy is now worth $4,000 billion and constitutes a manufacturing alternative to China, has become essential to any credible trade strategy. Tariffs can punish, but they cannot isolate a nation that is quickly becoming the anchor of the South and a partner of choice for the developed world.
As both sides rediscover the language of friendship, the coming months could see the re-emergence of a more balanced trade framework between India and the United States. Whether it’s tariff easing, technology partnerships, or energy deals, the reset could redefine the economic architecture of the Indo-Pacific.
Trump’s praise of Modi may seem personal, but it reflects something larger: recognition that India has moved from the margins of global trade to the center. The price festival may be coming to an end; a new season of pragmatic cooperation seems ready to begin.
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