Trump Praises Modi, Signals Optimism in US-India Trade and Defense Ties
US President Donald Trump has lauded Indian Prime Minister Narendra Modi, calling him a “very smart man” and a “great friend,” while expressing optimism about resolving ongoing trade differences between the two countries. The remarks come amid renewed efforts by both nations to strengthen economic and defense cooperation.
Trade Talks Moving Forward
President Trump acknowledged the historical challenges posed by India’s high tariffs but indicated that the current negotiations are yielding progress. He emphasized the importance of the personal rapport he shares with Prime Minister Modi and stated, “I think it’s going to work out very well between India and our country.” His comments signal a willingness to foster stronger commercial ties, despite previous tensions over duties and market access.
India’s Steps to Address US Concerns
India has taken multiple initiatives to bridge the trade gap and align more closely with American expectations:
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Boosting Energy Imports: India has committed to increasing its energy imports from the US, targeting $25 billion—up from the earlier $15 billion—to diversify its energy sources and balance trade figures.
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Defense Cooperation: The countries are exploring advanced defense deals, with India reportedly considering purchases that include cutting-edge US military platforms such as F-35 stealth fighters, indicating a growing trust and strategic alignment.
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Tariff Reductions: In response to US concerns over protectionist barriers, India has lowered import duties on several American goods. The tariff on bourbon whiskey has been reduced from 150% to 100%. Other items like luxury vehicles, solar cells, and machinery have also seen reduced duties, bringing India’s peak import tariff to around 70%, and the average down to under 11%.
Strengthening Bilateral Ties
These developments come at a time when both countries are seeking to counterbalance China’s economic and strategic influence in the Indo-Pacific. With trade and defense at the center of their growing partnership, both governments are working to convert mutual goodwill into actionable agreements that benefit their economies and enhance regional security.
President Trump’s public praise for Modi and the ongoing policy shifts reflect a broader realignment that could define the next phase of US-India relations—marked by pragmatic cooperation, shared democratic values, and an eye on global influence.
