Trump Calls PM Modi A 'Very Smart Man', Optimistic About Positive Outcome Of India-US Tariff Talks

US President Donald Trump has expressed confidence in the positive outcome of ongoing trade talks between the US and India, despite his past criticisms of New Delhi's high tariffs on American goods, Indian Express reported.

During a press briefing at the White House, Trump referred to Prime Minister Narendra Modi as a "very smart man" and a "great friend," noting that tariff discussions were progressing well.

“Prime Minister Modi was here just recently, and we have always been very good friends,” Trump said.

His remarks highlighted the ongoing strain in US-India ties due to trade issues.

“India is one of the highest tariffing nations in the world… it’s brutal. They’re very smart. He (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,” Trump added.

Trump's remarks came after several meetings between the two countries over months on issues like market access, reciprocal tariffs, and the trade deficit.

Prime Minister Modi’s visit to Washington in February marked a significant moment in these talks, which have largely revolved around bridging differences on tariffs, especially on sectors such as automobiles, agriculture, and alcohol.

Trump has consistently criticized India’s tariff policies, a key aspect of his administration's trade strategy with the country.

He previously referred to India as a "high-tariff nation" and indicated plans to impose reciprocal tariffs, set to take effect on 2 April.

These tariffs aim to match the duties that other countries, including India, impose on US exports.

Despite ongoing tensions, Trump remains hopeful about a positive resolution.

"I think it’s going to work out very well," he stated, adding praise for India's leadership, saying, "I want to say you have a great prime minister."

According to a Goldman Sachs report, India could be affected by Trump’s tariffs at the national level, the product level, or through non-tariff barriers, all of which could complicate trade relations between the two nations.

The report noted that at the national level, reciprocity would be the simplest approach.

However, applying tariffs at the product level—matching India’s tariffs on each imported product—could increase the average tariff differential by about 11.5 percentage points, though this would be more complex and take longer to implement.

“Reciprocity through non-tariff barriers, such as administrative restrictions, import licences, and export subsidies, is the most complicated approach, given the challenges of estimating non-tariff barriers. However, it could lead to even higher tariffs at either the product or national level,” Goldman Sachs stated.

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