US President Donald Trump has expressed strong confidence that the United States and India will successfully conclude a comprehensive trade agreement. Speaking to reporters at the White House, Trump praised Indian Prime Minister Narendra Modi, highlighting their personal rapport as a key factor in advancing negotiations.
“I like your Prime Minister a lot. He is a good friend of mine, and we get along well. We have a good relationship,” Trump stated, while also asserting that the era of trade arrangements heavily favoring other nations was over. He specifically mentioned past instances where he believed India had taken advantage of the US through high tariffs, noting that the dynamic has since shifted.
Progress in Negotiations
Trump’s remarks follow four days of intensive trade talks held in New Delhi from June 1 to June 4, 2026. Officials from the Office of the United States Trade Representative (USTR), led by the agency’s chief negotiator, engaged with their Indian counterparts on a broad spectrum of issues. These discussions covered trade in goods, customs procedures, non-tariff barriers, and economic security cooperation.
Both delegations characterized the recent discussions as productive, indicating significant progress. US Ambassador to India Sergio Gor revealed that negotiations were in their final stages, with only a small segment of the agreement remaining unresolved. Similarly, India’s Commerce and Industry Minister Piyush Goyal confirmed that most outstanding issues had been settled, with efforts now focused on finalizing details for the initial phase of the deal. Work on a broader Bilateral Trade Agreement is also reportedly advancing in parallel.
Looming Tariff Complication
Despite the positive momentum, a significant challenge remains: a potential new tariff threat from the Trump administration. The USTR is currently considering imposing an additional 12.5% tariff on imports from approximately 60 economies, including India. This proposal stems from a Section 301 review addressing concerns over imports allegedly linked to forced labor.
Countries that have adopted restrictions on such imports might face a 10% tariff, while those that have not could see tariffs rise to 12.5%. India, along with major trading partners like China, Japan, South Korea, the United Kingdom, Bangladesh, and Vietnam, is included in this review. US Trade Representative Jamieson Greer emphasized that nations failing to address imports tied to forced labor create unfair competition for American workers. This proposed tariff adds a layer of uncertainty to what has otherwise been a steadily progressing negotiation toward a US-India trade deal.