US President Donald Trump said the United States and India are close to finalising a trade agreement. He expressed confidence that both countries would soon overcome the remaining hurdles and reach a deal.
Trump Praises Modi
Speaking to reporters in the Oval Office on Thursday, Trump praised Prime Minister Narendra Modi and described him as a “good friend.” He said their strong personal relationship could help both sides resolve the final issues in the negotiations.
Trump said he believes the positive rapport between the two leaders will support efforts to complete the agreement.
Trump Criticises Past Trade Relations
While expressing optimism about the deal, Trump also criticised the trade relationship that existed between the two countries in the past.
He argued that India benefited more from trade with the United States for many years because of high tariffs on American goods.
“For years, India took advantage of the United States. They charged us tremendous tariffs and paid nothing,” Trump stated. “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 Minister a lot; he is a good friend of mine, and we get along well.”
Trump said the trade balance has now shifted in Washington’s favour.
New Delhi Hosts Key Trade Talks
Trump made these remarks after an important round of trade talks in New Delhi. Officials from the Office of the United States Trade Representative (USTR) met Indian commerce officials from June 1 to June 4.
Both sides discussed an interim trade agreement and worked to resolve outstanding issues.
The meetings aimed to create a deal that benefits both economies and strengthens bilateral trade ties.
Officials Focus On Major Trade Issues
Indian Commerce Ministry officials described the discussions as constructive. They said both sides negotiated in a “spirit of cooperation and pragmatism.”
The talks focused on several key areas. These included improving market access for goods and services, removing non-tariff barriers, simplifying customs procedures, boosting trade facilitation, and increasing cooperation on economic security.
Officials worked to find practical solutions and narrow differences.
Only A Few Issues Remain
Diplomats from both countries described the negotiations as productive. They said the first phase of the agreement is nearly complete.
US Ambassador to India Sergio Gor said negotiators have entered the final stage of discussions. He noted that officials are now working to resolve the “remaining 1 per cent sticking point” before announcing the agreement.
His comments indicate that both governments expect the deal to be completed soon.
Tariff Review Increases Pressure
The negotiations come at a crucial time. The Trump administration is reviewing a broader trade policy that could affect dozens of countries, including India.
The proposal could impose a 12.5 per cent tariff on imports from 60 economies under a Section 301 review. The review focuses on supply-chain compliance and concerns over forced labour imports.
This policy review has added urgency to the ongoing talks.
Energy Concerns Also Affect Discussions
Energy issues have also influenced trade negotiations between the two countries.
Earlier this year, Washington imposed an additional 25 per cent tariff on certain Indian imports because of India's purchases of Russian crude oil. Later, the United States removed the tariff after India agreed to stop those imports.
Officials are also watching a temporary US Treasury energy waiver that will expire on June 17. Both sides want to create a stable trade framework before that deadline.
Both Countries Push For Agreement
Despite the remaining challenges, both governments continue to support closer economic cooperation.
Recent progress in the talks and Trump's positive remarks suggest that Washington and New Delhi are moving closer to a final agreement. Officials from both countries are now focused on resolving the last few issues and completing a deal that could strengthen trade and investment ties for years to come.