US President Donald Trump on Thursday expressed confidence that the United States and India will soon conclude a trade agreement, describing Prime Minister Narendra Modi as a "good friend" with whom he shares a strong relationship.
"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 told reporters at the White House while discussing trade ties between the two countries.
His remarks came days after the US administration announced plans to impose an additional 12.5 per cent tariff on imports from India and 53 other countries, alleging that some imported goods were produced using forced labour.
? LMFAO! President Trump to reporter with a thick Indian accent: "Are you from India? I thought you were from GERMANY!"
— Eric Daugherty (@EricLDaugh) June 4, 2026
"I'm only kidding. You're central casting, OK? That's a very good thing."
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Speaking on trade relations, Trump claimed India had benefited from US policies for years by imposing high tariffs on American goods.
"For years, India took advantage of the United States. They charged us tremendous tariffs and paid nothing. Now it is the exact reverse, and we are making a lot of money with India," he said.
A US delegation visited India earlier this week for talks on an interim bilateral trade agreement. India's Commerce Ministry said the negotiations were conducted in a spirit of cooperation and pragmatism, with both sides reaffirming their commitment to reaching a mutually beneficial deal aimed at strengthening economic and trade ties.
Trump also cited the example of Harley-Davidson, arguing that high import duties had previously made it difficult for the iconic US motorcycle maker to sell its products in India.
"In the past, they wouldn't let Harley-Davidson sell its motorcycles. They charged a 200 per cent tariff, so Harley-Davidson was precluded. They ended up going to India and building their own plants," Trump said.
He contrasted this with US trade policies, claiming Indian motorcycle manufacturers faced no comparable barriers in the American market.
"They sold motorbikes here, too. You know how much we charged them? Nothing. And now it's the exact reverse. We're making a lot of money with India," he added.
India-US Trade Deal Framework
On February 7, following a phone conversation between Trump and Modi, India and the United States announced the framework for the first phase of a Bilateral Trade Agreement (BTA), also described as an interim trade deal.
Under the proposed framework, the US agreed to lower tariffs on Indian goods to 18 per cent from 50 per cent and remove a 25 per cent tariff linked to India's purchases of Russian oil. The remaining tariffs were also expected to be reduced under the agreement.
However, the trade roadmap faced uncertainty after the Supreme Court of the United States ruled on February 20 against Trump's broad reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
Following the ruling, Trump announced a 10 per cent tariff on imports from all countries for 150 days beginning February 24. Since then, India and the US have continued negotiations to revise and finalise the trade agreement in light of the court decision and subsequent policy changes.
Meanwhile, Washington's latest announcement of additional 12.5 per cent tariffs on imports from 54 countries — including India, Australia, China, Israel, Japan, Qatar and Russia — has added a fresh layer of complexity to the ongoing trade talks.
