India-US trade deal: US President
Donald Trump on Wednesday said that America would have a ‘great’ trade deal with India. Trump’s statement came during his visit to the World Economic Forum (WEF) that is being held at Davos in Switzerland.
Speaking to Moneycontrol on the sidelines of the WEF, Trump praised Prime Minister
Narendra Modi and expressed confidence in an India-US trade deal. “I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine. We are going to have a good deal,” Trump was quoted as saying. Trump had earlier delivered an over one hour long speech at WEF.
Trump’s remarks come at a time when the US has imposed 50% tariffs on India - which is among the highest in the world. While both countries have reiterated that trade talks and negotiations continue, a deal still remains elusive. Of the 50% tariffs, 25% are for India's crude oil imports from Russia, something that the Trump administration claims helps fund the Russian war against Ukraine.
Meanwhile, earlier this month, US Ambassador to India Sergio Gor assumed charge and expressed confidence in India-US ties. Sergio Gor voiced strong support for the ongoing trade negotiations, saying both countries are firmly committed to reaching an agreement.
While describing the bond between Trump and PM Modi as genuine, Gor said the US president could visit India “hopefully in the next year or two”.
He said the India-US relationship rests not only on shared interests but also on engagement at the highest political levels, adding that true partners may differ at times but ultimately resolve their disagreements.
“Remember, India is the world's largest nation, so it's not an easy task to get this across the finish line, but we are determined to get there. And while trade is very important for our relationship, we will continue to work closely together on other very important areas such as security, counterterrorism, energy, technology, education, and health,” he added.
Gor praised PM Modi, calling him an exceptional leader. “I was with the President…and as we had dinner right after New Year's, he recounted his incredible experience visiting here and also his great friendship with the great Prime Minister of India, Prime Minister Modi,” said Gor, who previously served as a close aide to Trump. “I've traveled all over the world with President Trump, and I can attest that his friendship with Prime Minister Modi is real,” he added.
US Claims PM Modi ‘didn’t call’; MEA Rebuts
At the same time, earlier this month, US Commerce Secretary Howard Lutnick claimed that the India-US trade deal failed to materialise because PM Modi did not place a call to Donald Trump. The Ministry of External Affairs, however, said the description of events was inaccurate and reaffirmed India’s willingness to pursue a trade pact that delivers benefits to both sides.
Lutnick had said on a podcast that India had “missed the train” by not reaching out to Trump within a three-week window, unlike leaders from several other countries.
Responding to the remarks, MEA spokesperson Randhir Jaiswal said India and the United States had been engaged in discussions on a bilateral trade agreement since February 13 last year and had repeatedly come close to finalising a deal.
“We have seen the remarks. India and the US were committed to negotiating a bilateral trade agreement with the US as far back as Feb 13 last year… On several occasions, we have been close to a deal… We remain interested in a mutually beneficial trade deal between two complementary economies and look forward to concluding it,” he said.
India and the US have held five rounds of official-level talks since negotiations began last February, alongside discussions at the ministerial level. Jaiswal also noted that Prime Minister Modi and President Trump had spoken by phone eight times in 2025, covering a broad range of issues linked to the bilateral partnership.