NEW DELHI: United States President Donald Trump on Thursday praised Prime Minister Narendra Modi and expressed confidence that Washington and New Delhi would soon conclude a trade agreement as negotiations between the two countries continue.
“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 said while commenting on ties with India.
Trump Says Trade Deal With India Is Within Reach
Expressing optimism about ongoing trade talks, Trump said the United States is now benefiting more from its economic relationship with India and expects a deal to be finalized.
“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,” he said.
The remarks come as both countries work towards finalizing the first phase of a bilateral trade agreement, which officials hope can be completed within the coming weeks.
Fresh Tariff Proposal Adds New Dimension
Trump’s comments were made a day after his administration proposed an additional 12.5% tariff on imports from 60 economies, including India.
The proposed measure has introduced a fresh element of uncertainty into trade negotiations, even as both sides report significant progress in discussions.
Negotiations Nearing Completion
Momentum towards a trade pact has strengthened in recent weeks. US Ambassador to India Sergio Gor stated that negotiations are approaching the final stage, with only a limited number of issues yet to be resolved.
Commerce and Industry Minister Piyush Goyal has also indicated that most major concerns have been addressed, with discussions now focused on ironing out the remaining details before unveiling the initial phase of the agreement.
USTR Review Could Complicate Discussions
A separate review by the Office of the United States Trade Representative (USTR) may also influence the negotiations.
Conducted under Section 301 of the US Trade Act of 1974, the review covers 60 economies and examines concerns related to imports allegedly linked to forced labour. The findings could have implications for future trade policies affecting several countries, including India.
Four Days of Talks in New Delhi
India and the United States recently concluded four days of trade negotiations in New Delhi from June 1 to June 4.
Officials from the USTR, led by its chief negotiator, held discussions with Indian counterparts on a range of issues, including trade in goods, customs procedures, trade facilitation, non-tariff barriers, and economic security cooperation.
Both sides described the talks as constructive and reaffirmed their commitment to securing a mutually beneficial interim trade agreement while continuing parallel negotiations on a broader Bilateral Trade Agreement (BTA).
Focus on Interim Pact and Long-Term Partnership
With most key issues reportedly settled, negotiators are now concentrating on resolving the remaining differences. The proposed interim pact is expected to serve as a stepping stone toward a comprehensive Bilateral Trade Agreement aimed at deepening economic ties between India and the United States.
