Trump had last week said he believes India will lower its trade tariffs substantially on American goods but had vowed retaliatory tariffs nevertheless on April 2 in line with his announcement earlier this month
New Delhi: In a good sign for India indicating progress in trade talks with the United States, President Donald Trump declared that “it's going to work out very well” between the two nations, just days before his deadline of April 2 for the levy of reciprocal tariffs by the US on various countries, including India. Trump described Prime Minister Narendra Modi as a "very smart man" and his "great friend".
The US President's remarks assume significance as they come while US assistant trade representative for South and Central Asia Brendan Lynch, along with a team of US government officials, has been holding talks with Indian government officials under the watch of commerce minister Piyush Goyal in New Delhi for the past five days.
Early on Saturday morning (IST), the US President said, "Prime Minister Modi was here just recently. And we've always been very good friends. India is one of the highest tariffing nations in the world. It's brutal. He (Modi) is a very smart man and a great friend of mine… We had very good talks. I think it's going to work out very well between India and our country… very, very well. And I want to say you have a great Prime Minister,” Trump said.
Global news agency Reuters reported, citing sources, that India is actively seeking to appease the Trump administration and is open to cutting tariffs on over half of US imports worth $23 billion, adding that during the talks in New Delhi, India has agreed to cut tariffs on agricultural products such as almonds, walnuts, cranberries, pistachios and lentils.
New Delhi had earlier said that India has engaged in talks for a bilateral trade pact with the US to "expand trade, enhance market access, reduce tariff and non-tariff barriers and deepen supply chain engagement".
At his weekly briefing last Friday, ministry of external affairs spokesperson Randhir Jaiswal had said that India is in talks with the US to reach a multi-sector agreement and pointed out that Goyal had visited the US earlier this month and had held talks with his US counterpart. This comes more than a month after the Prime Minister's visit to the US, where the two nations had agreed to negotiate a trade pact by autumn this year.
The United States President had last week said he believes India will lower its trade tariffs substantially on American goods but had vowed retaliatory tariffs nevertheless on April 2 in line with his announcement earlier this month.
“I believe they’re (India)...probably going to be lowering those tariffs substantially, but on April 2, we will be charging them the same tariffs they charge us,” he was quoted by news agency reports as having told an American website. He had added that he had a “very good relationship” with India but that the “only problem I have with India is they’re one of the highest tariffing nations in the world”.
Earlier this month, Trump had stated, "You can't sell anything into India. It is almost restrictive. They have agreed, by the way, they want to cut their tariffs way down now because somebody is finally exposing them for what they have done."
Before that, Trump had said, “And the big one will be on April 2, when reciprocal tariffs, so if India or China, or any of the countries that really… India is a very high tariff nation.” Prior to that as well, the US President had accused India of levying more than 100 per cent tariffs on American-made automobiles and had also targeted India on tariffs during the Prime Minister's visit to Washington last month.
A cautious India had recently said both nations “are in the process of advancing discussions on a multi-sector bilateral trade agreement (BTA)” that was announced last month during the PM’s visit to the USA.
Asked about it at a weekly media briefing earlier this month in the national capital, Jaiswal had said, “During the PM’s visit to the US in February 2025, both sides announced plans to negotiate a mutually beneficial, multi-sector bilateral trade agreement. The commerce and industries minister was in the US and met his counterparts. The two governments are in the process of advancing discussions on a multi-sector bilateral trade agreement. Our objective through the BTA is to strengthen and deepen India-US two-way trade across the goods and services sector, increase market access, reduce tariff and non-tariff barriers, and deepen supply chain integration between the two countries.”
Trump had earlier told the US Congress, "If you don't make your product in America… Under the Trump administration, you will pay a tariff, and in some cases, a rather large one. Other countries have used tariffs against us for decades, and now it's our turn to start using them against those other countries..."
"April 2, reciprocal tariffs kick in and whatever they tariff, other countries, we will tariff them. That's reciprocal back and forth. Whatever they tax us, we will tax them," the US President added.
It may be noted that just last month in Washington, in Modi’s presence, Trump had announced that as per his new policy, reciprocal tariffs will be levied on all countries, including India, that will be of the exact quantum that other nations levied on the US.
Demanding a "level playing field", the US President had said that India "has been just about the highest tariff nation anywhere in the world" with the levy on US goods ranging from 30 to 70 per cent tariff, but that now it does not matter how much India levies because the US would take the "easy way" out and "reciprocate" with an equal level of tariffs on India.
"They (India) have been very strong on tariffs. I don't necessarily blame them. It's just a different way of doing business," the US President had said. He also said the trade deficit imbalance with India, which is nearly $100 billion, will be addressed through measures including the sale of oil and gas to New Delhi and he hoped that the US can become India's "number one oil and gas supplier".
