Trump Signals ‘Good’ Trade Deal With India, Calls PM Modi a ‘Fantastic Leader’ at Davos

US President Donald Trump on Thursday expressed confidence that Washington and New Delhi would reach a “good” trade deal, even as he praised Prime Minister Narendra Modi as a “fantastic leader” and a “great friend.”

Speaking on the sidelines of the World Economic Forum (WEF) in Davos, Switzerland, Trump responded to a question from a Moneycontrol journalist on the stalled India–US 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.

The remarks come nearly five months after US tariffs on Indian exports were raised to a steep 50 per cent. Half of the hike was described by Trump as a “penalty” for India’s continued purchase of Russian oil, and uncertainty remains over whether—and when—a comprehensive trade agreement will be finalised.

Trade discussions between officials from both countries had been underway even before the tariffs took effect, with formal negotiations beginning in March–April last year after talks were cleared in February. However, recent statements by Trump and senior members of his administration have added to the ambiguity surrounding the future of the deal.

US Commerce Secretary Howard Lutnick recently claimed that a potential agreement collapsed because Prime Minister Modi did not “call” the US President. Separately, another Trump aide suggested the President had approved a bill that could raise tariffs on India to as high as 500 per cent—comments that sparked concern about the trajectory of bilateral ties despite Trump’s repeated assertions of personal friendship with Modi.

India swiftly rejected Lutnick’s claim. Some optimism returned after newly appointed US Ambassador to India Sergio Gor stated that Washington views India as a key partner and confirmed that trade talks are still ongoing.

Earlier this month, Trump again hinted at the possibility of further tariff hikes. Speaking to reporters aboard Air Force One, he described Modi as “a good guy” but suggested pressure could be applied swiftly.

“India wanted to make me happy. Modi is a very good guy, and he knew I was not happy. And it was important to make me happy. We can raise tariffs on them very quickly,” Trump said.

Trump Says US Economic Boom Benefits the World

Addressing the 56th Annual World Economic Forum summit on Wednesday, Trump also lauded the US economy, calling the country the “economic engine of the planet” and arguing that global economic health depends on American growth.

“I come to this year’s WEF with truly phenomenal news from America,” Trump said, marking the first anniversary of his return to the White House. He claimed that in the past 12 months, the US economy had seen booming growth, rising productivity, surging investment, increasing incomes, easing inflation, and stronger border security.

“The United States is amidst the fastest and most dramatic economic turnaround in the country’s history,” the President told global political and business leaders in Davos.