Donald Trump hails Modi as a ‘great Prime Minister,’ confident on US-India tariff deal

US President Donald Trump on Friday expressed optimism about the ongoing trade discussions between the United States and India, while also praising Prime Minister Narendra Modi’s leadership. Speaking to reporters at the swearing-in ceremony of US Attorney for New Jersey Alina Habba, Trump described PM Modi as a “very smart man” and a “great friend.”

"Prime Minister Modi was here just recently, and we've always been very good friends," Trump said. "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. We had very good talks. I think it's going to work out very well between India and our country. And I want to say you have a great prime minister."

His remarks followed PM Modi’s visit to the US in February, during which both leaders announced plans to negotiate the first phase of a Bilateral Trade Agreement (BTA) by fall 2025 to enhance economic cooperation.

PM Modi recalls bond with Trump

Earlier this week, PM Modi reflected on his relationship with Trump, citing the Howdy Modi event during Trump's first term as a defining moment.

"I was touched by his courage and his trust in me," PM Modi said, recalling how Trump ignored security protocol to take a lap of the stadium with him. He also commended Trump for his resilience after surviving an assassination attempt during his campaign.

US to impose 25% tariff on imported vehicles

In a major policy shift, Trump announced a 25% tariff on all imported vehicles set to take effect on April 2. The decision, aimed at boosting domestic manufacturing, will impact nearly half of all vehicles sold in the US, including American brands assembled overseas.

“This is very exciting for domestic manufacturing,” Trump said. “We need more carmakers producing inside our country, not just selling here.”

Trump calls for “reciprocal tariffs” on India

Trump has previously criticised India’s trade policies, calling it one of the most protectionist economies.

"We will soon impose reciprocal tariffs—they charge us, we charge them," Trump said in February, referring to countries like India and China. "Whatever a company or a country, such as India or China, charges, we want to be fair; hence, reciprocal."

He specifically pointed to India’s high automobile tariffs, stating, "India charges us auto tariffs higher than 100%."

During a joint session of Congress, Trump declared that the US has been taken advantage of for decades by nearly every country, including the European Union, China, Brazil, and Mexico, and vowed to end the trend.

“We won’t let that happen any longer,” he asserted.

Tensions rise as April 2 deadline nears

With Trump’s tariffs set to take effect soon, the Bilateral Trade Agreement remains a potential avenue for resolving disputes.