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Trump voices confidence in US-India trade agreement
US President Donald Trump expressed optimism on Thursday that Washington and New Delhi would soon finalize a trade deal, praising his rapport with Indian Prime Minister Narendra Modi while acknowledging ongoing challenges in negotiations.
Speaking to reporters in the Oval Office, Trump stated, "We'll get to a deal, because I like your prime minister a lot. He's a good friend of mine. We get along great, and we're going to make a deal."
Recent negotiations and setbacks
Trump's remarks followed a week of high-level discussions in Delhi, where a US delegation led by chief negotiator Brendan Lynch aimed to conclude an interim trade agreement. India's commerce ministry confirmed both nations remained committed to securing a mutually beneficial pact.
However, progress was disrupted when the US Trade Department proposed new tariffs on several countries-including India-over concerns about forced labor practices. The move could impose an additional 12.5% duty on Indian exports to the US.
Indian officials responded that the tariffs were not final, noting the US Trade Representative would review public comments before making a decision. They emphasized that broader trade talks were still underway.
Trump criticizes India's past trade policies
The US president reiterated his long-standing criticism of India's trade practices, accusing the country of historically imposing high tariffs on American goods. "They charged us tremendous tariffs and paid nothing... Now it is the exact reverse, and we are making a lot of money with India," he said.
Timeline of trade tensions
Trade discussions between the two nations began last year, but a final agreement has yet to materialize. In February, both sides agreed on a framework for an interim deal, with expectations it would be finalized by March. However, negotiations stalled after the US Supreme Court ruled many of Trump's tariffs "illegal," forcing reductions.
Initially, the US imposed tariffs of up to 50% on certain Indian goods, later cutting them to 18% in February. Following the court's decision, duties were further reduced to 10%.
India's commitments and future outlook
In response to US pressure, India pledged in February to increase purchases of American goods, including energy, aircraft, technology, and agricultural products, totaling $500 billion. Despite these commitments, the path to a final deal remains uncertain amid shifting tariff policies and political considerations.
Analysts suggest the upcoming US presidential election could further influence the timeline, as both sides weigh the benefits of a swift resolution against potential domestic backlash.
