US President Donald Trump on Thursday expressed strong confidence that the United States and India will finalize a trade agreement soon, describing Prime Minister Narendra Modi as a “good friend” and highlighting a shift in trade dynamics between the two nations .
“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,” Trump told reporters at the White House .
Despite his criticism of past policies, the President struck an optimistic tone about ongoing negotiations. “But 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. We have a good relationship,” Trump said .
Talks in Final Stages
Trump’s remarks came just after top officials from both countries held four days of trade talks in New Delhi from June 1 to June 4 . The discussions covered trade in goods, customs procedures, non-tariff barriers, and economic security cooperation.
Providing an update on the progress, US Ambassador to India Sergio Gor said negotiations are now in the final stages. “99 per cent of the deal is in place. The last one per cent is pending,” Gor said at the CITI India 2026 Conference . He added that both sides are “very hopeful” of finalising the agreement within the next several weeks .
Commerce and Industry Minister Piyush Goyal has also indicated that most elements of the first phase have been settled, with discussions now focused on “commas and full stops” .
Tariff Disputes and Harley-Davidson
Trump reiterated his long-standing concerns about India’s tariff regime, using the example of American motorcycle manufacturer Harley-Davidson to illustrate what he calls unfair trade barriers.
“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 the US tariff policies, noting that Indian motorcycle brands faced no such barriers in the American market. “They sold motorbikes here, too. You know how much we charged them? Nothing,” he said .
Pending Issues and Section 301
While an interim agreement appears imminent, certain hurdles remain. The Office of the US Trade Representative (USTR) has proposed additional tariffs on imports from 60 economies, including India, under Section 301 of the Trade Act of 1974 . These tariffs are linked to concerns over forced labour and could impose duties of up to 12.5 per cent on Indian goods .
India remains engaged with the US on this matter, with the commerce ministry confirming that discussions are continuing in parallel with the trade deal negotiations .
The Road Ahead
The framework for the first phase of the Bilateral Trade Agreement (BTA) was finalised in February following a phone call between Trump and Modi . Under that framework, India proposed tariff reductions on a range of US industrial and agricultural goods, while expressing intentions to purchase $500 billion of US energy products, aircraft, and technology items over five years .
However, the US Supreme Court’s February ruling against Trump’s sweeping reciprocal tariffs required a recalibration of the agreement . Both sides have since worked to adapt the deal to the new 10 per cent baseline tariff structure.
Officials from both countries have described the recent discussions as productive, with a shared commitment to finalising a mutually beneficial agreement that strengthens bilateral trade and economic ties .
