US President Donald Trump praised Prime Minister Narendra Modi, calling him a “good friend” and expressing confidence that Washington and New Delhi will finalise a trade agreement despite ongoing differences.
Speaking to reporters at the White House, Trump highlighted his personal rapport with PM Modi as a factor that could help move negotiations forward.
“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 responding to questions on US-India trade ties.
He indicated that the relationship between the two leaders could play a role in resolving outstanding issues.
‘For years, India took advantage… now it is the reverse’
Trump also referred to past trade imbalances, alleging that India had imposed high tariffs on American goods.
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“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,” he said.
#WATCH | President Donald Trump says, “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 because I like your Prime… pic.twitter.com/IR2x2MqUV5
— ANI (@ANI) June 4, 2026
Despite these concerns, the US President struck an optimistic tone about the outcome of negotiations.
“But we will get to a deal,” Trump said, signalling that both sides remain engaged in finding common ground.
Talks in New Delhi: focus on key trade issues
Trump’s remarks come days after officials from both countries held four days of trade talks in New Delhi from June 1 to June 4.
Delegations led by the Office of the United States Trade Representative (USTR) and Indian officials discussed a range of issues, including:
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- Trade in goods
- Customs procedures
- Non-tariff barriers
- Trade facilitation
- Economic security cooperation
Both sides described the discussions as productive and said work is ongoing towards an interim agreement, alongside a broader Bilateral Trade Agreement (BTA).
Tariff concerns: up to 12.5% under review
However, negotiations face uncertainty due to a parallel US review of tariffs under Section 301 of the Trade Act of 1974.
The proposal covers 60 economies, including India, and is linked to concerns over imports associated with forced labour.
- Countries with restrictions on such imports could face tariffs of 10%
- Those without similar measures may face duties of up to 12.5%
India, along with China, Japan, South Korea, the United Kingdom, Bangladesh and Vietnam, is part of this review.
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US Trade Representative Jamieson Greer said such measures are aimed at ensuring fair conditions for American workers.
Despite the tariff issue, officials on both sides have indicated progress.
US Ambassador to India Sergio Gor said talks are in their final stages, with only limited issues left unresolved. India’s Commerce Minister Piyush Goyal has also suggested that most aspects of the agreement have been settled, with discussions now focused on final details.
While an interim deal may be announced soon, the tariff proposal remains a potential sticking point in concluding a broader agreement.
