United States President Donald Trump on Thursday once again praised Prime Minister Narendra Modi, as both nations work toward finalizing a month-long trade agreement. Trump stated, "I like your Prime Minister a lot. He is a good friend of mine, and we get along well. We have a good relationship."
Trump Expresses Optimism on Trade Deal
Expressing optimism about the impending trade deal with New Delhi, Trump said the United States is "making a lot of money with India." He added, "For years, India took advantage of the United States. They charged us tremendous tariffs and paid nothing. Now it is the exact reverse and we are making a lot of money with India. But we will get to a deal."
Recent Tariff Proposal
Trump's latest remarks come a day after his administration proposed an additional 12.5% tariff on imports from 60 economies, including India. This move could complicate ongoing negotiations.
Progress in Negotiations
Momentum toward a deal has strengthened in recent weeks. US Ambassador to India Sergio Gor said negotiations were nearing completion, with only a limited number of issues unresolved. Commerce and Industry Minister Piyush Goyal similarly indicated that most matters have been settled, with discussions now focused on finalizing remaining details before the first phase of the agreement is unveiled.
Potential Complications
A separate USTR proposal could further complicate negotiations. The review, conducted under Section 301 of the US Trade Act of 1974, covers 60 economies and focuses on concerns surrounding imports allegedly linked to forced labour.
Previous Trade Talks
Earlier, India and the United States concluded four days of trade negotiations in New Delhi between June 1 and June 4. Officials from the Office of the United States Trade Representative (USTR), led by its chief negotiator, held discussions with Indian counterparts on issues such as trade in goods, customs procedures, trade facilitation, non-tariff barriers, and economic security cooperation.
Both sides termed the talks constructive and said efforts were underway to conclude a mutually beneficial interim trade pact, while negotiations on a broader Bilateral Trade Agreement (BTA) continue in parallel.
