From ‘dear friend’ to tariffs: How a phone call soured ties between PM Modi and Trump

In the weeks after India and Pakistan agreed to a ceasefire in May, New Delhi was miffed at Donald Trump’s repeated claims that he had brokered an end to the four-day conflict. As the US president spoke of averting a nuclear war, Indian diplomats began publicly pushing back.

The tensions peaked during a June 17 phone call between Trump and Prime Minister Narendra Modi, held after Trump left the G7 Summit in Canada early and skipped a meeting with the Indian leader, according to a Bloomberg report.

The report added that in the 35-minute conversation Modi told Trump that the ceasefire followed direct talks between New Delhi and Islamabad “upon Pakistan’s request” after successful air strikes during Operation Sindoor. India “does not and will never accept mediation,” Modi said.

According to the Bloomberg report, PM Modi wanted to set the record straight after learning Trump would host Pakistani Army Chief Asim Munir at the White House the next day. Concerned that Trump might try to arrange a meeting between them, Modi turned down an invitation to stop by Washington on his return from Canada, citing a prior commitment to visit Croatia.

While Washington never directly asked Modi to acknowledge Trump’s role, Indian officials said they noticed a change in tone from the White House afterward. Once Trump began publicly criticising India, they said, it marked a turning point in relations., as per the report

That rift has widened. This week, Trump announced a 50% tariff on Indian exports to the US — half of it a penalty for purchases of Russian oil. The move threatens decades of US efforts to court India as a counterweight to China.

Trump has since labeled India a “dead” economy with “obnoxious” trade barriers and little concern for Ukraine. Modi, who hasn’t spoken to Trump since June, spoke with Russian President Vladimir Putin and invited him to visit later this year.

“The carefully crafted consensus of successive administrations has brought the two largest democracies together for almost three decades, and the administration’s actions could endanger this progress if not brought to quick resolution,” said Eric Garcetti, former US ambassador to India. “I hope that cooler minds will prevail in both capitals. There’s too much at stake.”

'Prepared to pay the price'

Prime Minister Narendra Modi, in his first reaction to Trump's tariffs on India, which now totals to 50 percent, said that India is prepared to pay the price. "For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know we will have to pay a heavy price for it and I am ready for it. India is ready for it," he said. 

He was referring to the additional 25 percent tariffs, on top of the 25 percent tariffs announced by the US last week. While taking the overall tariffs to 50 percent, Donald Trump also offered a lifeline to India – a team of negotiators from the US is scheduled to visit India on August 25 to discuss the trade deal. The trade deal, on the other hand, has been stretched on for longer than expected because of New Delhi’s resistance to opening up the dairy and agriculture sectors. 

According to experts, there is a scope of the tariffs being slashed, provided India offers some concessions or opens up the dairy and agriculture sector as per the US’ demands. Opening up the sectors would pose a threat to the livelihoods of farmers, something PM Modi has strongly indicated India is not willing to do. 

China outreach

Amid the chill with Washington, New Delhi is also warming up diplomatically to Beijing despite a 2020 border clash that froze relations. The government has hosted high-level Chinese officials this year and the PM is planning a visit to China later this month for the first time in seven years to meet President Xi Jinping at the SCO Summit.

China on August 8 welcomed PM Modi’s planned visit to the Tianjin Summit of the Shanghai Cooperation Organisation (SCO) to be held later this month, describing the event as "a gathering of solidarity, friendship and fruitful results."

China’s ambassador to India, Xu Feihong, backed PM Modi, posting on X: “Give the bully an inch, he will take a mile.”

Trump’s tariff stance and shifting alliances have jolted even pro-US voices in New Delhi. While ties with China remain fraught, officials added the guiding approach now is “pragmatic realism.”