By Jessica Roberts
U.S. President Donald Trump and Indian Prime Minister Narendra Modi have deepened trade and energy cooperation following a phone call this week, underscoring steady momentum in bilateral ties even in the absence of a face-to-face summit.
After the call, Trump announced a bilateral trade understanding that lowers U.S. tariffs on several categories of Indian goods, in some cases cutting duties from 25% or more to about 18%, according to people familiar with the matter. India, in turn, agreed to ease certain trade barriers and increase purchases of U.S. energy, reducing its reliance on Russian oil.
Modi welcomed the tariff relief for “Made in India” products, describing the move as a positive step in strengthening economic ties between the two countries.
The latest development highlights a broader pattern in U.S.-India relations, with progress driven by regular leader-level engagement, incremental agreements and sustained institutional cooperation rather than high-profile summits alone.
That approach was reinforced during Modi’s working visit to the White House on Feb. 13, 2025 — his first bilateral trip to Washington during Trump’s second term and one of the earliest foreign-leader engagements after Trump’s January 2025 inauguration.
Defense, trade and technology
During the 2025 visit, the two leaders endorsed a new 10-year framework for the U.S.-India Major Defense Partnership, reaffirming cooperation on co-development projects, including autonomous maritime systems. They also highlighted the importance of all four foundational defense agreements, including the BECA geospatial intelligence-sharing pact.
On trade, both sides set an ambitious target to expand bilateral commerce, later framed publicly as “Mission 500,” aiming for $500 billion in two-way trade by 2030. Officials agreed to pursue a phased trade initiative to address long-standing market access issues in sectors such as agriculture and medical devices.
The leaders also launched U.S.-India COMPACT — Catalyzing Opportunities for Military Partnership, Accelerated Commerce and Technology — to deepen cooperation in artificial intelligence, quantum technologies, semiconductors, space and cybersecurity.
Energy security featured prominently, with commitments to expand U.S. hydrocarbon exports to India and advance civil nuclear cooperation as New Delhi seeks to diversify its energy sources.
Indo-Pacific focus
Trump and Modi reiterated support for a free, open and inclusive Indo-Pacific and pledged to strengthen naval interoperability and cooperation within the Quadrilateral Security Dialogue, which includes Japan and Australia.
Analysts say strategic alignment between Washington and New Delhi continues to be shaped largely by shared concerns over China’s growing influence in the region, even as the two sides manage differences over trade, India’s defense ties with Russia and broader global issues.
China is expected to view recent agreements as further evidence of closer U.S.-India coordination, while Pakistan is likely to continue leaning on its partnership with Beijing, regional analysts say.
Despite progress, challenges remain. Trade talks have often proved difficult, and future disputes over tariffs, market access or sanctions-related issues — including U.S. legislation affecting countries that purchase Russian weapons — could test the relationship.
Still, the February phone call and trade announcement suggest the partnership continues to advance between formal summits, reinforcing its role as a central pillar of Indo-Pacific geopolitics.