US President Donald Trump has presented a positive outlook on trade negotiations with India, acknowledging that Prime Minister Narendra Modi is a “very smart man.” His comments come as Washington and New Delhi navigate discussions over tariffs, with Trump reinforcing his stance on reciprocal trade measures.
Speaking at a press briefing, Trump addressed the issue of India being a high-tariff nation and reiterated his push for reciprocal tariffs on imports from countries that impose levies on American goods. He stated:
“Prime Minister Modi was here just recently. And we we’ve always been very good friends. India is one of the highest tariffing nations in the world. It’s brutal. He (Modi) is a very smart man and a great friend of mine actually and we had very good talks. I think it’s going to work out very well between India and our country very, very well.”
The statement comes just a day after Trump announced a 25 per cent tariff on all imported vehicles entering the United States. This move, effective April 2, is expected to impact nearly half of all vehicles sold in the country, including American brands assembled overseas.
Trump has repeatedly criticized India’s tariff policies, including a statement in February where he reinforced the idea of reciprocal tariffs on Indian and Chinese goods.
“We will soon impose reciprocal tariffs—they charge us, we charge them. Whatever a company or a country, such as India or China, charges, we want to be fair, hence, reciprocal,” he had said.
In February 2025, Prime Minister Modi visited Washington DC and held bilateral discussions with Trump. The visit came less than a month after Trump’s second-term inauguration.
During the visit, both leaders emphasized the need to deepen bilateral trade relations, ensuring economic growth that promotes fairness, national security, and job creation. As part of these efforts, India and the US set an ambitious trade target dubbed ‘Mission 500’, aiming to double total bilateral trade to $500 billion by 2030.
While Trump’s tariff policies have been met with mixed reactions, his cordial remarks about Modi suggest a constructive dialogue between the two nations. India and the US continue to be strategic partners, with trade negotiations playing a crucial role in shaping their economic relationship.
As April 2 approaches, both countries will need to navigate the complexities of tariff policies while ensuring a balanced trade approach that benefits both economies.
