--- title: The U.S. and India Are Quietly Patching Things Up description: There are signs Washington and Delhi may get to a trade deal this year., writes Ian Bremmer. canonical: https://time.com/7320424/us-india-trade-trump-modi/ author: Ian Bremmer article:opinion: true article:content_tier: free article:published_time: 2025-09-27T10:02:00.000Z article:modified_time: 2026-03-11T00:19:13.226Z article:section: Ideas og:title: The U.S. and India Are Quietly Patching Things Up og:description: There are signs Washington and Delhi may get to a trade deal this year., writes Ian Bremmer. og:url: https://time.com/7320424/us-india-trade-trump-modi/ og:site_name: TIME og:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt91418e7d76006368/6998ca18e2d64b72cdc5fb64/GettyImages-2199453959.jpg?branch=production&width=1024&quality=75&auto=webp&crop=16:9 og:image:width: 1024 og:image:height: 576 og:image:alt: President Trump Welcomes Indian Prime Minister Modi To The White House og:type: article twitter:card: summary_large_image twitter:title: The U.S. and India Are Quietly Patching Things Up twitter:description: There are signs Washington and Delhi may get to a trade deal this year., writes Ian Bremmer. twitter:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt91418e7d76006368/6998ca18e2d64b72cdc5fb64/GettyImages-2199453959.jpg?branch=production&width=1024&quality=75&auto=webp&crop=16:9 ---  IDEASTime ideas # The U.S. and India Are Quietly Patching Things Up > Sponsored content. 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Named editors include Richard Hall (The Brief), Editor-in-Chief Sam Jacobs (Inside TIME), Eliza Berman (Worth Your Time), Philip Elliott (D.C. Brief), Justin Worland (Future Proof) and Harry Booth (In the Loop). Health Matters is written by TIME's health desk. #### How do I sign up for a TIME newsletter? Go to time.com/newsletters, choose the newsletters you want and enter your email address. There is no cost and no subscription requirement.  by [Ian Bremmer](https://time.com/author/ian-bremmer/)  ## Ian Bremmer Sep 27, 2025 10:02 AM UTC  U.S. President Donald Trump and Indian Prime Minister Narendra Modi meet in the Oval Office at the White House on Feb. 13, 2025 in Washington, D.C. U.S. President Donald Trump and Indian Prime Minister Narendra Modi meet in the Oval Office at the White House on Feb. 13, 2025 in Washington, D.C.Andrew Harnik—Getty Images  by [Ian Bremmer](https://time.com/author/ian-bremmer/)  ## Ian Bremmer Sep 27, 2025 10:02 AM UTC In [Donald Trump’s](https://time.com/collections/100-most-influential-people-2025/7273782/donald-trump/) first term and at the opening of his second, the U.S. President and India’s Prime Minister Narendra Modi looked to have a special relationship. Similar views on the value of strongman domestic politics and a common aim to check [China’s global ambitions](https://www.economist.com/international/2025/09/23/a-made-in-china-plan-for-world-domination) made them well-aligned partners. Things have changed. Common interests remain the bedrock of relations between the U.S. and Modi’s India, but the personal trust that helped build their relationship has now [cooled significantly](https://www.ndtv.com/world-news/donald-trump-personal-rapport-with-pm-narendra-modi-gone-now-lesson-for-all-ex-us-official-john-bolton-india-tariffs-9219918). You might think the biggest source of tension between the two leaders is Trump’s search for leverage over Russia’s Vladimir Putin—in particular, his bid to halt India’s [import of sanctioned Russian oil](https://time.com/7307203/india-russia-crude-oil-trump-miller-tariffs-war-ukraine-economy/) to force Putin to negotiate an end to the war in Ukraine. But it’s another armed conflict that’s at the heart of the friction. When [fighting began](https://time.com/7283794/india-pakistan-kashmir-tensions-timeline-history-conflict/) in May between India and Pakistan following a [terrorist attack](https://www.bbc.co.uk/news/articles/cy9vyzzyjzlo) in Indian-controlled Kashmir, Trump leaped at the chance to play peacemaker, and he tasked Vice President J.D. Vance and Secretary of State Marco Rubio with de-escalating tensions. Despite India’s plans for a joint announcement of a deal to end the fighting, Trump claimed personal credit, and Pakistan compounded Modi’s anger by suggesting Trump deserved a Nobel Peace Prize for his efforts. Trump then responded to a Pakistani diplomatic charm offensive with lucrative investment deals on energy, cryptocurrencies, and critical minerals. His request that Modi add his support to the U.S. President’s [long-standing Nobel ambitions](https://www.hindustantimes.com/india-news/now-at-un-trump-says-he-ended-india-pakistan-war-i-deserve-nobel-prize-cites-congo-cambodia-101758637486873.html) even further alienated the Indian Prime Minister, who began to [express his frustrations](https://www.nytimes.com/2025/08/30/us/politics/trump-modi-india.html). **Read More:** [_How Modi Misread Trump_](https://time.com/7308311/modi-trump-india-us-tariffs/) That’s the background for Trump’s decision in August to impose [50% tariffs on India](https://www.bbc.co.uk/news/articles/c5ykznn158qo), ostensibly for its continuing purchases of Russian oil. Modi’s response? He accepted an invitation from China’s Xi Jinping to [join](https://www.bbc.co.uk/news/videos/cn0r02zgjj4o) a number of world leaders, [notably](https://news.sky.com/story/china-led-sco-summit-is-a-show-designed-to-rattle-the-west-13422957) [including Putin](https://www.axios.com/2025/09/01/trump-modi-xi-putin-hold-hands-tariffs), at the Shanghai Cooperation Organisation summit in Tianjin meant to highlight China’s growing diplomatic clout. It was Modi’s first trip to China in seven years. A ride and hour-long chat with Putin in the Russian President’s limousine sent a clear message of defiance that India and its leader would not be pushed around by the White House. Modi’s choice to leave Beijing before a triumphalist military parade reflects that permanent interests continue to define the India-China relationship. Washington and Delhi still share a [deep mistrust](https://time.com/7311553/india-china-mending-ties-trump-us/) of China’s power and Xi’s intent to use it. Yet there are now signs that Washington and New Delhi are [making progress](https://www.bloomberg.com/news/articles/2025-09-24/india-trade-minister-seeks-more-us-energy-as-trade-talks-resume) toward limiting damage to the relationship. In particular, recent developments make it [more likely](https://www.reuters.com/world/india/india-us-hold-trade-talks-raising-hopes-reset-2025-09-15/) that the U.S. and India will announce a trade agreement by the end of this year. **Read More:** [_How Modi Is Sending Trump a Message_](https://time.com/7314122/india-modi-xi-china-putin-trump/) On the digital front, optimism for a deal rose on Sept. 22 when the two governments [reportedly agreed](https://economictimes.indiatimes.com/news/economy/foreign-trade/india-us-agree-not-to-seek-info-on-source-code/articleshow/124032491.cms?from=mdr) not to demand information on source code or other proprietary knowledge as a precondition for U.S. companies doing business in India. U.S. negotiators also hope India will drop restrictions on the import of American soy, a [potentially big win for U.S. farmers](https://thewire.in/agriculture/after-chinas-snub-is-india-going-to-be-the-dumpyard-for-the-uss-genetically-modified-soybean) made anxious by the potential impact of tariffs on the sale of their products, especially as China slows its purchases of American produce. Finally, Modi and Trump [may well meet](https://indianexpress.com/article/india/india-relationship-critical-says-us-talks-on-both-sides-look-at-window-for-modi-trump-meeting-10267543/) on the sidelines of the East Asia Summit in Malaysia in October. That would go a long way toward easing tensions and helping negotiators get to yes on a trade deal. Yet, none of this will restore the personal trust that’s been lost between Trump and Modi. Common geopolitical and commercial interests will keep a solid floor under the relationship and continue the longer-term progress of broadening and deepening U.S.-India relations. But the transactional base of relations between the two leaders will continue. New irritants will emerge, as we saw with Trump’s recent announcement of a [$100,000 fee](https://time.com/7319116/h1b-visa-news-trump-rules/) added to H-1B visas, which [allow](https://www.bbc.co.uk/news/articles/ce3yy58lj79o) high-skilled foreign workers a chance to work in the U.S. About 70% of H-1B visa holders are Indian nationals. What, Modi must wonder, will Trump come up with next? [TIME Ideas](https://www.time.com/ideas) hosts the world's leading voices, providing commentary on events in news, society, and culture. We welcome outside contributions. 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