US President Donald Trump has voiced optimism about a substantial trade agreement with India during his visit to the World Economic Forum (WEF) in Davos, Switzerland. Speaking to Moneycontrol on the sidelines of the forum, Trump commended Prime Minister Narendra Modi, describing him as a “fantastic man” and a personal friend, while expressing confidence that a favorable trade deal between the two nations is forthcoming. Earlier, Trump delivered an extensive speech at WEF, emphasizing global economic cooperation.
The remarks come against the backdrop of the United States imposing 50% tariffs on India, among the highest globally. These tariffs include a 25% levy on India’s crude oil imports from Russia, which the US argues indirectly supports Russia’s military actions in Ukraine. While both nations have reiterated their commitment to ongoing negotiations, a finalized agreement remains pending despite multiple rounds of discussions.
Recently, US Ambassador to India, Sergio Gor, assumed his position and highlighted the strong foundation of India-US relations. Gor emphasized that the partnership extends beyond trade, encompassing security, counterterrorism, energy, technology, education, and healthcare. He also described the personal bond between Trump and PM Modi as genuine, suggesting a potential visit by the US President to India in the next one or two years. Gor praised Modi’s leadership, recounting Trump’s positive experiences and longstanding friendship with the Indian Prime Minister.
The trade talks have faced mixed signals, including comments from US Commerce Secretary Howard Lutnick, who suggested the deal faltered due to a lack of direct communication from PM Modi. India’s Ministry of External Affairs (MEA) refuted this claim, reaffirming that both nations have been actively engaged in negotiations since February 2025. MEA spokesperson Randhir Jaiswal noted that India and the US have held five rounds of official talks, with Modi and Trump speaking eight times in 2025, addressing various issues integral to bilateral cooperation.
Despite the hurdles, both countries continue to pursue a mutually beneficial trade agreement. While trade remains a critical aspect of the relationship, India and the US are determined to collaborate across multiple strategic sectors, reinforcing their role as complementary partners on the global stage.
