US reciprocal tariffs: Trump says PM Modi is 'a very smart man,' signals positive outcome from trade talks

Donald Trump has renewed his criticism of India’s tariff regime while extending strong praise for Prime Minister Narendra Modi, whom he called a “great friend” and a “very smart man.” Speaking to reporters at the White House, the former U.S. President struck a mix of admiration and critique, signalling hope for a breakthrough in ongoing trade negotiations.

“Prime Minister Modi was here just recently, and we've always been very good friends. India is one of the highest-tariffing nations in the world... They're very smart,” Trump said. “He is a very smart man and a great friend of mine. We had very good talks. I think it's going to work out very well between India and our country. And I want to say you have a great prime minister.”

His remarks come as Washington prepares to enforce reciprocal tariffs on countries, including India, over what Trump has repeatedly described as unfair trade practices.

“I have a very good relationship with India, but the only problem I have with India is they're one of the highest-tariffing nations in the world,” he said. “I believe they're probably going to lower those tariffs substantially, but on April 2, we will be charging them the same tariffs they charge us.”

Trump also accused India of restricting market access: “You can't sell anything into India, it is almost restrictive. They have agreed, by the way, they want to cut their tariffs way down now because somebody is finally exposing them for what they have done.”

Since February, India has ramped up efforts to ease trade tensions. New Delhi pledged to boost U.S. energy imports to $25 billion, up from $15 billion last year. The Modi government also made room for greater defence ties, with Trump indicating that India may soon purchase F-35 stealth fighter jets.

India's response to tariffs

In response to tariff concerns, India slashed duties on key imports — reducing the tariff on bourbon whisky from 150% to 100%, while the February budget trimmed duties on luxury cars, solar cells, and machinery. India’s peak import tariff is now at 70%, with the average down to below 11%.

Separately, Elon Musk’s Starlink is nearing final regulatory clearance to operate in India after tying up with Reliance and Airtel — a move expected to aid the satellite internet firm’s expansion across emerging markets.