Trump signals major US-India trade deal, says strong relations with Modi aiding talks
PTC Web Desk: US President Donald Trump has indicated that a major trade agreement between the United States and India could be on the horizon, while highlighting his strong personal rapport with Prime Minister Narendra Modi.
Speaking about bilateral trade relations, Trump claimed that India had historically imposed high tariffs on American goods, allowing it to benefit disproportionately from trade with the United States. He asserted that the situation has shifted and that the US is now generating significant gains from its economic engagement with India.
Trump also expressed optimism about the future of trade ties between the two countries, suggesting that a substantial agreement could be finalised in the near future. Emphasising his relationship with the Indian Prime Minister, Trump described Modi as a close friend and said the two leaders share a strong understanding and positive working relationship.
His remarks come as trade discussions between New Delhi and Washington continue to gather momentum. A US delegation recently held multiple rounds of talks with Indian government officials in the Indian capital as both sides work toward an interim trade arrangement aimed at resolving several long-standing commercial issues.
India’s Ministry of Commerce has described the negotiations as constructive, stating that both countries are seeking a mutually beneficial framework that supports economic interests on both sides. Officials have indicated that efforts are ongoing to advance the proposed agreement and address key areas of concern.
However, the talks face fresh challenges following a US proposal to impose additional import duties on countries that, according to Washington, have not taken adequate measures to curb practices linked to forced labour. India has been included in the proposed list of affected nations.
If implemented, the measure could result in an additional 12.5% tariff on certain Indian exports entering the US market, potentially affecting the competitiveness of Indian goods and creating added pressure for exporters.
The Indian government has noted that no final decision has been made regarding the proposed tariff. US authorities are expected to seek feedback from stakeholders and the public before taking a final call on the matter.
India and the United States had earlier reached a broad understanding on an interim trade pact in February 2026, intended to address several unresolved trade concerns. However, uncertainty emerged after the US Supreme Court reportedly ruled against certain tariff measures introduced by Trump, raising questions over the future applicability of some trade restrictions.
As a result, the interim agreement has yet to be finalised, although negotiations between the two sides remain active.
- With inputs from agencies
