‘We’re Gonna Have a Good Deal’: Trump Praises PM Modi at Davos
US President Donald Trump on Thursday struck an optimistic tone on India–US relations, expressing confidence that the two countries would reach a favourable trade agreement despite ongoing tariff tensions.
Speaking on the sidelines of the World Economic Forum (WEF) in Davos, Trump praised Prime Minister Narendra Modi, describing him as a “fantastic leader” and a “great friend,” and said he expects a positive outcome from trade negotiations.
“I have a great respect for your prime minister. He is a fantastic man and a friend of mine. We are gonna have a good deal,” Trump said in response to a question on trade ties with India.
Trade Talks Continue Amid Tariff Uncertainty
Trump’s remarks come at a time when India–US trade relations remain uncertain. Nearly five months have passed since the United States raised tariffs on Indian exports to 50 per cent, with Trump earlier describing half of the increase as a “penalty” linked to India’s purchase of Russian oil.
Although trade discussions between officials from both sides have been ongoing since before the tariffs were imposed, there has been no clarity on when a final agreement may be announced.
Mixed Signals From Trump Administration
Recent statements from senior members of the Trump administration have added to the uncertainty. US Commerce Secretary Howard Lutnick claimed that a potential trade deal collapsed because Prime Minister Modi did not personally reach out to Trump — a statement India strongly rejected as incorrect.
Another senior aide suggested that Trump had approved a proposal that could push tariffs on India to as high as 500 per cent, further fuelling speculation over the future of trade ties.
However, optimism returned after newly appointed US Ambassador to India Sergio Gor said Washington views India as a key partner and confirmed that trade talks remain ongoing.
Praise Accompanied by Tariff Warning
Earlier this month, Trump had indicated that tariffs on Indian goods could be raised further, even as he continued to praise Prime Minister Modi. Speaking to reporters aboard Air Force One, Trump described Modi as “a very good guy” but warned that tariffs could be increased rapidly if required.
“India wanted to make me happy. Modi is a very good guy… We can raise tariffs on them very quickly,” Trump said.
Trump Highlights US Economic Growth at Davos
At the Davos summit, Trump also highlighted what he described as strong economic performance in the United States, calling it the “economic engine of the planet.”
“The economy is booming, growth is exploding, incomes are rising and inflation is being defeated,” Trump said, claiming the US is witnessing one of the fastest economic turnarounds in its history.
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