India-US Trade Deal: Trump Signals Breakthrough
India-US Trade Deal: Trump’s Davos Remarks Rekindle Hopes Amid Tariff Standoff
The long-awaited India-US trade deal returned to the global spotlight on Wednesday after US President Donald Trump expressed strong confidence that Washington and New Delhi would eventually reach a “great” agreement. Speaking on the sidelines of the World Economic Forum (WEF) in Davos, Trump praised Prime Minister Narendra Modi and underlined the personal rapport between the two leaders as a key driver of bilateral engagement.
In an interview with Moneycontrol following his more-than-hour-long address at the WEF, Trump described Prime Minister Modi as “a fantastic man” and a close friend. Emphasising the positive trajectory of negotiations, he said the United States and India would arrive at a good trade deal, reinforcing expectations that months of discussions could soon translate into concrete outcomes.
India-US Trade: Trade Talks Continue Amid Record Tariffs
Trump’s remarks come at a delicate moment in India-US economic relations. The United States has imposed tariffs of up to 50 percent on Indian goods, among the highest applied globally. A significant portion of these duties—25 percent—has been linked to India’s crude oil imports from Russia, which the Trump administration argues indirectly support Moscow’s war efforts in Ukraine.
Despite these trade barriers, both governments have reiterated that negotiations remain active. Officials on both sides maintain that differences persist but are not insurmountable, keeping the India-US trade deal firmly on the diplomatic agenda.
US Envoy Reaffirms Commitment to Partnership
Earlier this month, newly appointed US Ambassador to India, Sergio Gor, assumed charge and expressed optimism about the future of India-US ties. Gor strongly backed the ongoing trade negotiations, stating that both nations are determined to reach an agreement that reflects their growing strategic partnership.
Describing the bond between Trump and Modi as genuine, Gor suggested that the US President could visit India within the next one or two years. He stressed that the bilateral relationship goes far beyond trade, encompassing cooperation in security, counterterrorism, energy, technology, education, and health.
“True partners may disagree at times, but they ultimately resolve their differences,” Gor said, highlighting the resilience of ties between the world’s largest democracy and the world’s largest economy.
India-US Trade: Conflicting Claims and India’s Response
The renewed optimism follows controversy sparked earlier this month when US Commerce Secretary Howard Lutnick claimed the India-US trade deal stalled because Prime Minister Modi did not personally call Trump within a specific time frame. Lutnick suggested India had “missed the train” by not reaching out promptly, unlike several other countries.
India firmly rejected this version of events. The Ministry of External Affairs (MEA) described the remarks as inaccurate and reaffirmed New Delhi’s commitment to a mutually beneficial agreement. MEA spokesperson Randhir Jaiswal noted that negotiations have been underway since February 13 last year and have come close to conclusion on multiple occasions.
According to the MEA, India and the US have held five rounds of official-level talks, complemented by regular ministerial discussions. Jaiswal also revealed that Prime Minister Modi and President Trump spoke by phone eight times in 2025, covering a wide range of bilateral and global issues.