WASHINGTON: US President Donald Trump said on Tuesday his administration is continuing negotiations to address trade barriers with India and that he would talk to Prime Minister Narendra Modi, in a sign of a reset after weeks of diplomatic friction.

Trump, in a marked shift of tone, said he looked forward to speaking to Modi in the `upcoming weeks` and expressed optimism that they could finalise a trade deal.`I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries, he said in a post on social media.

Modi reciprocated the optimism in a social media post on Wednesday, saying Washington and New Delhi `are close friends and natural partners.` He said teams from both countries are working to conclude the trade discussions at the earliest.

`I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people,` Modi said. The latest comments from both leaders drove India`s shares up over 0.5 per cent.

Trump had promised for months that the two sides were close to clinching atrade deal, only to double new tariffs on Indian imports to 50pc, sparking questions about the future of the US-India relationship, which had strengthened in recent years, including during Trump`s first term. Over the past few weeks, Trump and his top officials have criticised India for buying oil from Russia and said that India was funding the war in Ukraine, a charge New Delhi denies.

The discord with the US has coincided with India warming up to China.

Late last month, Modi made his first visit to China in seven years for a summit hosted by Chinese President Xi Jinping and was seen holding hands with Russian President Vladimir Putin.

`While the social media statements by Trump and Modi signal a potential rapprochement between the US andIndia, it is still premature to assume that a resolution will arrive swiftly,` Madhavi Arora, economist at Emkay Global, said.

`With Trump, we will need to wait for more concrete signals that a deal is in the offing.

Indian and US trade officials are likely to plan visits to restart in-person trade talks in September, CNBC-TV18 reported, citing sources. A planned visit by US trade negotiators to New Delhi from Aug 25 to Aug 29 was canceled, after trade talks hit major roadblocks.

India`s trade ministry declined to comment on the report of a new round of meetings between trade negotiators.

US-India two-way goods trade totaled $129 billion in 2024, with a $45.8bn US trade deficit, according to US Census Bureau data.-Reuters