Modi, Trump discuss trade, defence and energy amid fresh US sanctions tensions

Prime Minister Narendra Modi on Wednesday had a telephone conversation with US President Donald Trump to evaluate progress in bilateral ties and the discussion covered major areas of mutual interest and strategic cooperation, including trade, defence and energy.

The two leaders spoke against the backdrop of heightened trade friction following the enactment of the 'Lindsey O. Graham Sanctioning Russia and Iran Act of 2026', which authorises tariffs of up to 100 per cent on nations purchasing Russian oil and gas, including India and China.

Chinese President Xi Jinping was also in the United States from September 23 to 25 and had bilateral talks with Trump.

Prime Minister Modi and President Trump exchanged views on regional and international developments and discussed ongoing efforts to promote global peace and security, according to a statement issued by the Prime Minister's Office.

The leaders reaffirmed their commitment to advancing the India-US Comprehensive Global Strategic Partnership and agreed to maintain close engagement to deepen cooperation for the benefit of the people of both countries, the statement said.

"The two leaders reviewed progress in bilateral cooperation across trade, defence, energy, critical technologies and other areas of mutual interest," the statement said.

Modi said in a post on X that he had a productive conversation with President Trump.

"We reviewed our bilateral cooperation in trade, defence, energy, critical technologies and other areas.

"We agreed to maintain close engagement to take our Comprehensive Global Strategic Partnership forward," he said. Both leaders agreed to remain in touch.

In a post on X, US envoy to India Sergio Gor said, "A very good call between President Trump and Prime Minster Modi!".

External Affairs Minister S Jaishankar recently met US Secretary of State Marco Rubio on the margins of the UN General Assembly in New York, with India's concerns related to the Sanctioning Russia and Iran Act (SRIA) figuring in their talks.

"Good to meet @SecRubio of the US #UNHighLevelWeek. Reiterated India's interests and concerns with regard to SRIA. Also discussed the Gulf and Ukraine situations," he had said. India is a major buyer of Russian oil.

Commerce and Industry Minister Piyush Goyal is currently in the US for the G20 trade ministers' meeting. On the sidelines, he will meet US Trade Representative Jamieson Greer.

Goyal will engage bilaterally with him as part of ongoing efforts to advance a balanced and mutually beneficial India-US Bilateral Trade Agreement (BTA) and finalise an interim deal in line with the Joint Statement of February 7, 2026.

India and the US in February announced the finalisation of the framework for the first phase of the bilateral trade agreement (BTA). However, changes in the tariff landscape in the US have led to further negotiations on the pact.

Goyal on September 24 said that the trade pact between India and the US is "done and dusted" and will be executed once the United States gives India the right competitive advantage over its competitors in the American market.

At present, Indian goods attract an additional 10 per cent duty. It was imposed under a Sec 301 probe, citing concerns related to "forced labour".

Goyal last met the USTR Greer in June here. He led an official delegation during June 22-24.

"The two leaders conducted a comprehensive review of core BTA elements, including enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers, and expanded cooperation in strategic sectors...Discussions focused on pathways to conclude an interim agreement as an important milestone toward a comprehensive BTA," a commerce ministry statement dated June 24 said.

India's exports to the US increased by 21.83 per cent to USD 8.4 billion. Imports were up 65.78 per cent to USD 5.97 billion.

During April-August 2026-27, the country's merchandise exports to the US grew 6.17 per cent to USD 42.8 billion, while imports increased 29.6 per cent to USD 28 billion.

The US was the largest trading partner of India in 2025-26. It was UD 132.2 billion (exports USD 86.51 billion and imports USD 45.62 billion).

India's major merchandise exports include electronic goods, engineering products, and drugs and pharmaceuticals, while imports include crude petroleum, electronic items, and industrial machinery.