New Delhi: US President Donald Trump on Tuesday expressed optimism about finalizing a trade agreement with India, emphasizing his strong personal respect for Prime Minister Narendra Modi. Speaking at the APEC CEOs Luncheon in Gyeongju, South Korea, Trump praised Modi, calling him both “the nicest looking guy” and “tough as hell,” highlighting the leader’s strong global presence and leadership.
Trump said, “I am going to do a trade deal with India,” stressing his administration’s commitment to strengthening economic ties between Washington and New Delhi.
The announcement comes as both countries appear close to agreeing on the framework for a new trade pact, aimed at reviving relations that cooled after the US imposed steep tariffs on Indian goods earlier.
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Trade Talks Near Completion
The negotiations reportedly are in the final stages, with the focus on reducing US tariffs on Indian exports, possibly from the current 50% to around 15%. Officials describe the contours of the deal as still being finalized but indicate that it could mark a significant improvement in bilateral trade relations.
Trump highlighted the broader context of his trade policy, noting his administration’s global achievements. “Around the world, we are signing one trade deal after another,” he said, framing the potential agreement with India as part of a broader effort to strengthen the US economy and international partnerships.
Trump Recounts Role in India-Pakistan Tensions
During his speech, Trump also recounted past interactions with Prime Minister Modi during periods of heightened India-Pakistan tensions. He recalled telling both Indian and Pakistani leaders that the US could not engage in trade while hostilities continued. Trump claimed that warning of “250% tariffs” led to a ceasefire within 48 hours, and he suggested his intervention “saved millions and millions of lives.”
Trump has reiterated this version of events several times since May, asserting that Washington mediated a “full and immediate” ceasefire. However, Indian officials have consistently denied any US involvement, stating that the ceasefire followed Pakistan’s military outreach to India after cross-border clashes triggered by India’s Operation Sindoor, in response to a terrorist attack in Pahalgam.
Context of US-India Relations
US-India trade relations had faced tension earlier this year after Trump’s administration imposed additional duties on Indian goods, citing India’s support for Ukraine’s war effort and other trade imbalances. The potential new deal would ease tariffs, signaling a thaw in relations and creating opportunities for deeper economic collaboration.
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Trump’s remarks also came as part of his Asia tour, ahead of a scheduled meeting with Chinese President Xi Jinping at the APEC summit in Gyeongju. The US President’s statements underline a broader strategy of engaging Asian powers economically while projecting strong leadership in international affairs.
Looking Ahead
While the final details of the trade agreement remain under negotiation, Trump’s public endorsement signals a mutual interest in strengthening ties between the US and India. Analysts note that easing tariffs could boost Indian exports, while opening doors for greater US investment in the region.
Both governments now face the task of translating these discussions into a formal agreement that addresses trade imbalances and fosters long-term economic partnership.