US President Donald Trump on Friday described Prime Minister Narendra Modi as a 'great friend' and a 'very smart man'. He made these statements at a White House press briefing where he reaffirmed his position on India's high tariffs.
"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."
US prepares to implement reciprocal tariffs on several countries, including India, from April 2. Trump has consistently critiqued India's trade policies, calling it 'tariff king' and describing its import duties as 'very unfair and strong'.
Trump had said in an earlier statement, "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. 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."
Addressing the issue, MoS ministry of external affairs Kirti Vardhan Singh said that during PM Modi's visit to the US on February 12-13, both India and the US resolved to deepen the bilateral trade relationship to promote growth that ensures fairness, national security and job creation. "PM Modi and US President Donald Trump set a new bilateral trade target – 'Mission 500' – aiming to more than double the total two-way goods and services trade to $500 billion by 2030... Both sides announced plans to negotiate the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by the fall of 2025."
Tired of too many ads?Previously, Trump had criticised India's trade practices, stating 'they have the highest tariffs' and 'it is a hard place to do business". Trump had said, "We will soon impose reciprocal tariffs- they charge us, we charge them. Whatever a company or a country, such as India or China, charges, we want to be fair; hence, reciprocal."
He continued, "We have never done that. We were getting ready to do it until Covid hit." Specifically addressing India's automotive import duties, Trump noted, "India charges us auto tariffs higher than 100%."
During his address to a joint session of the US Congress, Trump confirmed the reciprocal tax implementation on April 2, expressing that the US had faced exploitation from nearly every nation globally and promised to prevent such practices.
Additionally, he addressed tariffs imposed by the European Union, China, Brazil, and Mexico, indicating that the US would implement corresponding tariffs based on other nations' treatment of the US.
In a declaration from the Oval Office on Thursday, Trump announced a 25% tariff on all imported vehicles entering the United States, describing it as 'very exciting' for domestic manufacturing.
The new tariffs, commencing April 2, will affect approximately half of all vehicles sold in the United States, including American brands produced overseas. This comprehensive policy intends to encourage automotive manufacturers to establish additional production facilities within US territory.