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Anything involving Prime Minister Narendra Modi and US President Donald Trump is getting extra attention these days. And the reason is obviously - tariffs.
For India, these conversations matter beyond diplomacy. The US is India's biggest merchandise trading partner, and changes in tariffs can affect Indian exporters, companies, markets and, eventually, the prices businesses and consumers pay.
Why are we talking about this: on Wednesday evening, PM Modi said he had spoken with President Trump, with the conversation covering everything from trade and defence to energy and critical technologies.
So, on the surface, this was a broad diplomatic conversation. But the timing makes the trade and energy parts particularly important.
Elephant in the room: the conversation comes less than two weeks after Trump signed the Sanctioning Russia and Iran Act of 2026, which expands Washington's powers to target Russia and Iran economically.
The legislation gives the US President the authority to impose tariffs of up to 100% on countries that continue significant purchases of Russian oil and gas. India matters here because it remains one of the world's major buyers of Russian crude.
Zoom out: external Affairs Minister S Jaishankar recently met US Secretary of State Marco Rubio on the sidelines of the UN General Assembly in New York, where India's concerns around the new sanctions law came up in discussions.
India has also warned Washington that measures targeting buyers of Russian energy could affect India-US relations as well as the broader global energy market.
Commerce and Industry Minister Piyush Goyal is currently in the United States, where he is expected to meet US Trade Representative Jamieson Greer on the sidelines of the G20 trade ministers' meeting.
Big thing: Indian goods entering the US currently face an additional 10% tariff under a Section 301 action, linked by the US to concerns over forced labour.
India's merchandise exports to the US jumped 21.83% year-on-year to $8.4 billion in August, while imports from the US surged 65.78% to $5.97 billion.
During April-August FY27, India's exports to the US grew 6.17% to $42.8 billion, while imports increased 29.6% to $28 billion.
So when Modi and Trump talk about trade and energy, markets pay attention for a reason.
