US President Donald Trump praised Prime Minister Narendra Modi as a “fantastic leader” and a “great friend” at the World Economic Forum (WEF) in Davos, Switzerland, on January 21, 2026. Speaking to Indian media on the sidelines of his address, Trump expressed optimism about a “good deal” and “great deal” for India-US trade ties. This comes amid ongoing negotiations strained by US tariffs on Indian exports, raised to 50% in late 2025—half labeled a “penalty” over India’s Russian oil purchases.
Trump highlighted his personal respect for Modi, stating, “I have great respect for your prime minister. He is a fantastic man and a friend of mine. We are gonna have a good deal”. The remarks signal a thaw in relations after tensions, including threats of tariffs up to 500% and claims by US aides that Modi delayed talks. India rejected those assertions, with its new US ambassador affirming active trade discussions.
At Davos, Trump touted US economic achievements in his first year back in office: booming growth, surging productivity, rising incomes, defeated inflation, and a secured border. He called America the “economic engine of the planet,” benefiting global trade. Bilateral trade hit $190 billion in 2025, with India as the US’s ninth-largest partner, but disputes over dairy, agriculture, and digital taxes persist. A deal could boost exports like textiles and pharma, creating jobs and stability.
FAQs [Frequently Asked Questions]
1. What did Trump say about Modi at Davos?
Trump called PM Modi a “fantastic leader,” “great friend,” and expressed “great respect,” predicting a “good deal” on trade during a media chat.
2. Why were US tariffs imposed on India?
Tariffs rose to 50% in 2025, half as a “penalty” for India’s Russian oil buys, amid disputes on dairy, farm goods, and digital taxes.
3. What is the current India-US trade volume?
Bilateral trade reached $190 billion in 2025, with India as US’s ninth-largest partner, but faces hurdles like tariffs and market access issues.
4. When might the trade deal happen?
No timeline given, but Trump’s “soon” optimism at Davos suggests progress despite past delays; talks continue post-tariff hikes.