US President Donald Trump on Tuesday revealed that Washington is working on a new trade deal with India, amid continuing discussions between the two countries over tariffs and trade imbalances.
Speaking in South Korea ahead of the upcoming Asia-Pacific Economic Cooperation (APEC) summit, Trump said, “I’m doing a trade deal with India, and I have great respect and love for Prime Minister Modi. We have a great relationship.”
Earlier, he said, “Prime Minister Modi is the nicest looking guy. He looks like he would like to have your father. He is a killer, his stuff is…no, we will fight… Whoa, is this the same man that I know?” Trump said during a media address.
The comments signal renewed engagement between Washington and New Delhi at a time when both nations are seeking to strengthen economic and strategic cooperation in the Indo-Pacific region.
Tariff Disputes Shadow Trade Talks
In August 2025, the Trump administration imposed tariffs of up to 50% on Indian imports as additional penalties linked to India’s ongoing oil trade with Russia. The move strained bilateral relations, prompting calls from both sides for fresh negotiations.
While the US cited violations of trade compliance and sanctions policy, India reiterated that its energy imports are guided by national interest and market-driven needs, not by geopolitical pressure.
ALSO READ: One govt job per family, 200 units of free electricity: INDIA Bloc releases Bihar manifesto
“India’s energy purchases are shaped by affordability and security considerations,” a senior Indian official said earlier this year.
New Delhi has consistently defended its right to secure affordable energy to meet domestic demand, emphasizing that energy access remains crucial for its 1.4 billion citizens.
Indian officials have maintained that cooperation with Russia does not undermine global stability but rather supports energy security and economic resilience.
Meanwhile, Washington has hinted that the new trade framework could include agreements on technology, defense, and manufacturing, areas where both nations share deep interests.
Strengthening Strategic Ties Ahead of APEC Summit
The timing of Trump’s remarks — just days before the APEC summit — suggests that the administration may use the event to push forward a broader Indo-Pacific economic agenda that includes India.
Diplomatic sources indicated that Prime Minister Narendra Modi and President Trump could meet on the sidelines of the summit to discuss bilateral trade, defense collaboration, and clean energy initiatives.
The upcoming discussions could pave the way for a comprehensive trade agreement, potentially reducing tariff barriers and boosting investments between the two nations.
