Amid ongoing efforts to finalize a bilateral trade deal, Prime Minister Narendra Modi and US President Donald Trump engaged in a phone call on Thursday, December 11, 2025. The leaders reaffirmed their commitment to strengthening bilateral cooperation and exchanged views on regional and global developments.
The conversation occurred shortly after Washington expressed optimism regarding New Delhi's latest trade offer. PM Modi conveyed on X, "Had a very warm and engaging conversation with President Trump. We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the US will continue to work together for global peace, stability and prosperity". This was their first conversation in nearly two months. They last spoke on October 9.
The call took place amidst ongoing discussions between trade negotiators from both countries and less than a week after PM Modi's summit with Russian President Vladimir Putin. The US Congress' Senate Foreign Affairs committee also held a hearing where lawmakers questioned Trump's policy of alienating India and imposing tariffs.
Both leaders acknowledged the "steady strengthening of bilateral cooperation across all domains" and expressed their intent to collaborate closely on shared challenges and common interests. They also focused on expanding cooperation in critical technologies, energy, defense, security, and other priority sectors relevant to the India-US COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st century.
The push for a trade agreement comes as India and the US have faced escalating tariff tensions throughout 2025. The Trump administration imposed a 25% reciprocal tariff on certain Indian exports in early August, followed by an additional 25% penalty tariff, totaling 50%, linked to India's Russian crude oil imports. These measures have impacted several Indian exports, including textiles, leather, gems, jewelry, and shrimps. Former RBI governor Raghuram Rajan attributed the tariffs to India's refusal to endorse Trump's claim of mediating an India-Pakistan ceasefire. Trump has claimed he personally "stopped the war" between India and Pakistan.
Despite these trade disputes, a US trade delegation is currently in New Delhi for talks aimed at finalizing a bilateral trade agreement. While the US seeks access for its farm products, such as corn and soybean, India remains concerned about allowing American meat and dairy products into its market. Foreign Secretary Vikram Misri met with US Deputy Trade Representative Rick Switzer on Wednesday to discuss economic and technology partnerships, ongoing trade negotiations, and opportunities to boost trade and supply chains. Both sides are aiming to finalize the first part of the agreement in the coming months.
