Trump confident on India trade deal, hails Modi as ‘very smart’ man | World News
US President Donald Trump expressed confidence that ongoing trade negotiations between the United States and India will reach a positive resolution, despite his longstanding criticisms of India’s high tariffs on American goods. During a press briefing at the White House, Trump referred to Prime Miner Narendra Modi as a “very smart man” and a “great friend,” emphasizing that discussions on tariffs were progressing well.
“Prime Miner Modi was here just recently, and we have always been very good friends,” Trump said. His remarks underscore the significance of the bilateral relationship, which has been under strain due to trade disagreements. “India is one of the highest tariffing nations in the world… it’s brutal. They’re very smart. He (Modi) is a very smart man and a great friend of mine. We had very good talks. I think it’s going to work out very well between India and our country,” Trump continued.
The comments came after a series of meetings between the two countries over months, aimed at addressing issues such as market access, reciprocal tariffs, and the broader trade deficit. Modi’s visit to Washington in February marked a key moment in these discussions, which have seen both sides attempting to bridge differences on tariffs, especially on sectors such as automobiles, agriculture, and alcohol.
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Trump’s repeated criticism of India’s tariff policies has been a central theme of his adminration’s approach to trade with the South Asian nation. Earlier, Trump had described India as a “high-tariff nation,” highlighting his intention to introduce reciprocal tariffs, which would take effect on April 2. These tariffs are designed to match the duties imposed other countries, including India, on US exports.
Despite the tensions, Trump remains optimic about the prospects for a successful outcome. “I think it’s going to work out very well,” he said, adding praise for India’s leadership. “I want to say you have a great prime miner.”
Indian trade negotiators have recently sought details on US implementation plans for the reciprocal tariffs. However, US counterparts have remained focused on discussing the scope of the deal, revealing little about reciprocal tariffs that India is keen to avoid, The Indian Express has learnt. This has raised concerns among Indian trade officials that the US could use reciprocal tariffs as leverage to push for an early conclusion of the deal on goods, where it has sought broad market access in sectors including automobiles, whisky, and agriculture.
“The Indian side has sought details on the implementation plans for reciprocal tariffs, as there is a lack of clarity on whether the new tariffs will be applied sector-wise or at a national level. But US counterparts that include political appointees, have not shared any details,” a government official said.Story continues below this ad
A Goldman Sachs report suggested that India could be affected Trump’s tariffs at the national level, the product level, or through non-tariff barriers, all of which could complicate trade relations between the two nations.
At the national level, the report noted that reciprocity would be the simplest approach. If applied at the product level—where the US matches India’s tariffs on each imported product — “this may increase the average tariff differential approximately 11.5 percentage points but would be more complex and require a longer implementation timeline.”
“Reciprocity through non-tariff barriers, such as adminrative restrictions, import licences, and export subsidies, is the most complicated approach, given the challenges of estimating non-tariff barriers. However, it could lead to even higher tariffs at either the product or national level,” Goldman Sachs stated.
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