'We are making lot of money with India': Trump claims trade gains have 'reversed'; praises PM Modi

NEW DELHI: US President Donald Trump on Thursday praised Prime Minister Narendra Modi, saying that Washington and New Delhi will soon reach a trade agreement.

While talking to reporters in the Oval Office, Trump said that India had benefited for years from the trade imbalance, but the situation has now changed.

“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.


“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 added.

Trump's latest remark comes a day after his administration proposed an additional 12.5% tariff on imports from 60 economies, including India.

Earlier, India and the United States wrapped up four days of trade negotiations in New Delhi between June 1 and June 4, with officials from the Office of the United States Trade Representative (USTR), led by its chief negotiator, holding 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.

Under the proposal, economies that have introduced restrictions on such imports could face tariffs of 10%, while those without comparable measures may be subjected to duties of up to 12.5%. India, China, Japan, South Korea, the United Kingdom, Bangladesh and Vietnam are among the economies under review.

US Trade Representative Jamieson Greer said countries that do not adequately address imports associated with forced labour create an uneven playing field for American workers. Despite the uncertainty surrounding tariffs, both New Delhi and Washington have continued to express confidence that an interim trade agreement can be finalised soon.

Momentum towards a deal has strengthened in recent weeks. US Ambassador to India Sergio Gor said the negotiations were nearing completion, with only a limited number of issues still unresolved. Commerce and Industry Minister Piyush Goyal has similarly indicated that most matters have been settled, with discussions now centred on finalising the remaining details before the first phase of the agreement is unveiled.

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.