US President Donald Trump praised Indian Prime Minister Narendra Modi, calling him a “very smart man” and a “great friend” amid ongoing India-US tariff negotiations. Trump’s remarks came during an interaction with reporters at the swearing-in ceremony of Alina Habba, the newly appointed US Attorney for New Jersey, on Friday, March 28, 2025.

Trump Lauds PM Modi’s Leadership and Friendship

Trump acknowledged India’s high tariffs on imported goods and expressed admiration for PM Modi’s strategic approach to trade and policy.
“Prime Minister Modi was here just recently, and we’ve always been very good friends,” Trump stated. Recognizing India’s stance on tariffs, he added, “India is one of the highest-tariffing nations in the world… they’re very smart. He (PM Modi) is a very smart man and a great friend of mine.”

Strengthening India-US Relations Through Tariff Talks

Trump expressed optimism about the outcome of the ongoing India-US tariff discussions, stating, “I think it’s going to work out very well between India and our country.” His remarks signal a positive outlook as both nations continue to negotiate a trade deal aimed at addressing tariff disparities and fostering a mutually beneficial economic relationship.

Recent Modi-Trump Meeting at White House

The latest praise comes after PM Modi’s visit to the White House in February 2025, where he held productive talks with Trump. Their camaraderie was evident, with Trump referring to Modi as a “special man” and a “tough negotiator.” During the meeting, both leaders discussed pressing trade issues and explored ways to enhance economic cooperation between the two nations.

Trump’s Push for Reciprocal Tariffs on India and China

In February 2025, Trump announced plans to impose reciprocal tariffs on countries like India and China, arguing that the US should charge the same tariffs that these nations impose on American goods.
“We’re going to have reciprocal tariffs. If India or China imposes high tariffs on American products, we’ll do the same,” Trump declared during a press conference. This policy move is seen as part of Trump’s broader strategy to protect American industries and encourage domestic manufacturing.

New 25% Tariff on Imported Vehicles from April 2

As part of this policy, Trump also announced a 25% tariff on all imported vehicles entering the US, effective April 2, 2025. This move is expected to impact nearly half of all vehicles sold in the country, including American brands manufactured overseas. While the decision aims to strengthen domestic manufacturing, it is likely to have ripple effects on global trade dynamics, including India’s automobile exports to the US.

India’s Tariff Strategy and Concerns

India, on the other hand, is negotiating to reduce tariffs on $23 billion worth of American imports while simultaneously seeking to protect its $66 billion worth of exports to the US. Indian officials have been actively engaging with their US counterparts to secure a balanced trade agreement that protects domestic industries while addressing US concerns.

Trump’s Criticism of India’s High Tariffs

Trump has previously criticized India for imposing high tariffs, particularly on automobile imports, which can exceed 100% in some cases. During past interactions, Trump voiced his dissatisfaction, labeling India as one of the “highest-tariffing nations” and emphasizing the need for a reciprocal approach to trade policies.

Modi Highlights Trump’s ‘Nation First’ Ideology

In a recent three-hour podcast with AI researcher Lex Fridman, PM Modi reflected on his association with Trump and praised his “America First” ideology. Modi recalled the 2019 ‘Howdy Modi’ event in Texas, where Trump had accompanied him around the stadium without hesitation, reflecting their mutual respect and friendship.
“His life was for his nation. His reflection showed his America First spirit, just as I believe in Nation First,” Modi said during the podcast.

April 2 Deadline Looms as Negotiations Intensify

With the April 2, 2025 deadline for the implementation of reciprocal tariffs approaching, both nations are intensifying discussions to finalize a comprehensive trade deal. The proposed deal aims to reduce trade imbalances, ensure fair tariff practices, and promote bilateral investments.

Key Areas of Focus in the Trade Deal

The India-US trade deal under discussion covers a range of sectors, including:

• Automobile tariffs: Addressing high import duties on American vehicles.

• Agriculture and dairy products: Exploring greater market access for US agricultural exports.

• Pharmaceuticals and technology: Reducing restrictions on Indian exports while encouraging technology partnerships.

Impact on Bilateral Trade and Economic Ties

A successful resolution of the ongoing tariff negotiations could significantly boost bilateral trade between India and the US. The US remains one of India’s largest trading partners, with trade volumes crossing $160 billion in 2024. A favorable trade deal could further enhance economic cooperation and open up new avenues for investment and innovation.

Trump’s Vision for US-India Relations

Trump’s remarks underscore his commitment to strengthening India-US relations while advocating for fair trade practices. His praise for Modi and acknowledgment of India’s strategic approach highlights the deepening partnership between the world’s largest democracies.

Looking Ahead: A Pivotal Phase in India-US Trade Relations

As the April 2 tariff deadline approaches, the world is watching closely to see how India and the US navigate this critical phase of trade negotiations. While challenges remain, the shared commitment of both leaders to fostering stronger economic ties suggests that a mutually beneficial outcome is within reach.

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