Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday, 9 September 2025

Friendship, Friction and the Art of Negotiation: Reflections on Modi–Trump Trade Talks

Friendship, Friction and the Art of Negotiation: Reflections on Modi–Trump Trade Talks

Friendship, Friction and the Art of Negotiation: Reflections on Modi–Trump Trade Talks

When I first read Prime Minister Narendra Modi’s short, optimistic message—“India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India‑US partnership” Narendra Modi on X—I felt the simultaneous comfort and unease that only high‑stakes diplomacy can produce. Comfort, because public warmth between leaders stabilizes expectations. Unease, because warmth is often the wrapper around very hard bargaining.

Two short public signals from the leaders—Modi’s reciprocity and President Trump’s pledge to continue negotiations—are being read as proof that the relationship is resilient even while a painful tariff dispute simmers beneath the surface Daily Jagran and commentators note Mr. Trump’s softened tone as tactical rather than spiritual Moneycontrol.

Friendship as Strategy

I have always admired gestures of personal rapport in diplomacy. When leaders call each other friends it does not erase differences; it creates a platform to carry them. In other words, friendship becomes a form of strategic capital. But friendship does not pay tariffs or replace lost export orders. That gap between the symbolic and the material is where policy is tested.

There is something mature in what we are seeing: public warmth paired with private preparation to haggle. Modi’s language—"unlocking limitless potential"—is aspirational, signalling a long view. Trump’s insistence on striking deals and using tariffs as a lever is transactional. Those two postures can coexist, and in some moments must coexist, if statecraft is to be more than posturing.

Strategic autonomy in an era of compressed choices

This moment illuminates a recurring truth about geostrategy: smaller margins of maneuver accompany larger global shocks. India’s continuing purchase of Russian oil and its energy calculations place it in a delicate position. Washington’s tariff moves and its sanctions posture are more than trade; they are instruments to shape geopolitical choices. India must weigh economic pain against strategic autonomy: secure energy, diversified supply chains, and independent diplomacy.

That balance—between principle and pragmatism—is what I call the art of strategic autonomy. It’s not non‑alignment as a refusal to pick; it is the capacity to make choices that advance national development while preserving room to pivot.

What businesses and citizens feel

For all the presidential warmth, the immediate effect is felt in factories, ports and boardrooms. Tariff shocks are blunt instruments. They disrupt supply chains, raise input costs, and make investment plans uncertain. Exporters and refiners will watch every public utterance and private negotiation with disproportionate intensity. Markets listen to the tone of leaders before they read the fine print. The gesture of a phone call matters not because it guarantees an outcome, but because it reduces the probability of escalation—and that matters to business.

The policy lesson is plain but easily overlooked: diplomatic reassurance without quick, credible technical work—negotiating mechanism, timelines, dispute‑settlement confidence—only postpones the pain. The deeper the economic integration, the more urgent the technical scaffolding.

Tariffs, power and precedent

We should also see this episode through a wider lens. The tariffs dimension is not only about India; it is a pattern in a new era of trade statecraft. Tariffs are being used as leverage in multiple theatres. That makes each bilateral spat a precedent. How India responds here—firmly, but with an eye to preserving the strategic relationship—will send a signal to other partners and to markets.

My sense is that both leaders understand the cost of letting trade frictions metastasize into strategic rifts. Their public exchange suggests they prefer negotiation to rupture. That is encouraging, but negotiators must now translate signals into schedules, technical fixes and credible guarantees.

A philosophical note: trust is a fragile compound

On a philosophical level, this episode prompts a question I often return to: what is the currency of trust between states? It is not just words. It is predictability, institutions, and the willingness to suffer short‑term costs for long‑term gain. Friendship amplifies trust; institutions harden it.

If political leaders value the India‑US partnership, they will invest in the institutions and people who keep the relationship functioning when optics are not enough: trade negotiators, independent regulators, business councils, dispute‑resolution mechanisms. Friendship opens the door; systems keep it open.

Closing reflection

I am heartened that Modi and Trump chose public dialogue over public estrangement—an important choice in a noisy world Daily Jagran, Moneycontrol, Narendra Modi on X. But words are not policy. The test ahead will be whether both sides can turn personal rapport into disciplined negotiation that protects jobs, investment, and strategic interests.

I remain cautiously optimistic. The capacity to be friends and to negotiate hard is not a contradiction—it is the essence of modern statecraft.


Regards,
Hemen Parekh

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