Trump calls Modi 'good friend', confident India-US trade deal imminent
What's the story
United States President Donald Trump has expressed hope that a trade deal with India will be finalized soon. Speaking at the White House, he called Indian Prime Minister Narendra Modi a "good friend of mine, and we get along well. We have a good relationship." However, this comes after the US announced plans to impose additional 12.5% tariffs on goods from India and 53 other countries over concerns about forced labor.
Tariff allegations
Trump accuses India of taking advantage of US trade policies
Trump also accused India of taking advantage of US trade policies, saying they charged high tariffs and paid nothing. "Now it is the exact reverse, and we are making a lot of money with India," he said. He pointed to Harley-Davidson's struggles in India due to high tariffs, contrasting them with those of Indian motorcycle brands, which face no such barriers in the US market. "They sold motorbikes here, too. You know (how much) we charged them? Nothing," he said.
Ongoing talks
Recent US-India trade talks
A US delegation had visited India earlier this week for talks on a bilateral trade agreement. The discussions were said to be positive and constructive, with both sides committed to reaching a mutually beneficial deal that strengthens bilateral trade and economic ties. However, the US Supreme Court on February 20 struck down Trump's blanket reciprocal tariffs under the 1977 International Emergency Economic Powers Act (IEEPA).
Tariff imposition
Supreme Court ruling and Trump's tariff announcement
Following the Supreme Court's ruling, Trump announced 10% tariffs on all countries for 150 days starting February 24. In the immediate wake of the ruling, India and the US continued to renegotiate their trade deal. Despite these challenges, both countries remain committed to strengthening their economic ties through a mutually beneficial agreement, the Ministry of Commerce and Industry stated.