During an interaction with reporters at the swearing-in ceremony of U.S. Attorney Alina Habba, President Donald Trump expressed optimism about ongoing tariff talks between India and the United States, stating that "tariffs are going to work out well" between the two nations.

Trump praised Indian Prime Minister Narendra Modi, referring to him as a "very smart man" and a "great friend," highlighting their strong personal rapport. He acknowledged India's status as one of the highest tariffing nations globally but emphasized his belief in achieving a favourable outcome for both countries.

Trump's comments come amid ongoing negotiations for a proposed bilateral trade agreement aimed at enhancing economic cooperation by expanding market access, reducing trade barriers, and deepening supply chain integration.

These discussions follow India's decision to lower tariffs on select U.S. products, such as bourbon whiskey, motorcycles, and certain agricultural goods. The first phase of the agreement is expected to be finalised by fall 2025.

Despite his positive remarks about Modi, Trump reiterated his stance on reciprocal tariffs, emphasising that the U.S. would impose tariffs equivalent to those levied by trading partners like India.

This policy aims to address longstanding trade imbalances and incentivize domestic manufacturing. Trump's recent announcement of a 25% tariff on imported vehicles, effective April 2, underscores his broader strategy to bolster American industries.

India remains hopeful of securing concessions during these negotiations to mitigate the impact of reciprocal tariffs. Officials have indicated willingness to reduce tariffs on several U.S. products as part of the trade deal discussions.

Both nations aim to leverage this opportunity to strengthen economic ties while countering China's growing influence in the Indo-Pacific region.

Agencies