After weeks of escalating tensions, U.S. President Donald Trump has signaled a potential thaw in relations with India, expressing optimism about upcoming trade talks and looking forward to speaking with Prime Minister Narendra Modi in the "upcoming weeks". This marks a shift in tone after the Trump administration imposed tariffs of up to 50% on Indian goods, including a 25% penalty related to India's continued purchases of Russian oil.

Trump announced the ongoing negotiations and his anticipated conversation with Modi via a post on his social media platform, Truth Social. He stated he felt certain there would be no difficulty in reaching a successful conclusion for both countries.

Modi responded positively, calling India and the U.S. "close friends and natural partners" in a post on X. He expressed confidence that trade negotiations would unlock the "limitless potential" of the India-U.S. partnership and that teams were working to conclude discussions at the earliest. Modi also conveyed his anticipation of speaking with President Trump, affirming they would "work together to secure a brighter, more prosperous future" for their people.

The recent strain in relations stemmed from several factors, including trade disputes, tariffs, and differing views on India's relationship with Russia. Trump's administration had criticized India for its continued oil trade with Russia despite Western sanctions, even suggesting India was funding the war in Ukraine, a claim New Delhi denies. These tensions coincided with India's warming relations with China, highlighted by Modi's visit to China for the Shanghai Cooperation Organisation (SCO) summit where he met with Chinese President Xi Jinping and Russian President Vladimir Putin.

Trump had previously remarked that the U.S. appeared to have "lost" India, along with Russia, "to deepest, darkest, China". He also criticized India for high tariffs and claimed credit for mediating a ceasefire between India and Pakistan in May, a claim that India refuted.

Despite the recent friction, there have been signs of a potential reconciliation. Trump affirmed that he and Modi would "always be friends," and described the India-U.S. relationship as "very special," downplaying his earlier remarks about losing India to China. Modi reciprocated these sentiments, stating he "deeply appreciated and fully reciprocated" Trump's positive assessment of bilateral relations.

The resumption of trade negotiations could signal a move towards resolving the trade disputes that have strained relations. The U.S. has expressed concerns about its trade deficit with India and India's high tariff barriers. Washington is also pressing New Delhi to ease prices on U.S. dairy and farm goods, which India has resisted to protect its farmers.

Despite the challenges, both countries have a strong interest in maintaining a positive relationship. The U.S. views India as an important partner in the Indo-Pacific region and a counterweight to China. India, while committed to its strategic autonomy and multi-vector foreign policy, also recognizes the importance of its economic and strategic ties with the U.S.

The upcoming weeks will be crucial in determining whether the two countries can overcome their differences and revitalize their partnership.