US President Donald Trump on Thursday, 5 June signalled that the United States and India are on course to finalise a bilateral trade agreement, describing Prime Minister Narendra Modi as 'a good friend' and expressing confidence that the two sides would close a deal. The remarks came during a White House event focused on coal and energy policy.

What Trump Said

When asked about reports that a trade agreement was imminent following Secretary of State Marco Rubio's recent visit to India, Trump said: 'Well, we have it.' He added: 'We'll get to a deal because I like — you know, I like your prime minister a lot. He's a good friend of mine, get along great and we're going to make a deal. We have a very good relationship.'

Trump also repeated his long-standing criticism of India's tariff regime, asserting that India had historically imposed steep duties on American goods while the US charged little in return. 'India, for years, really took advantage of the United States,' he said. 'They charged us tremendous tariffs, and they paid nothing.'

The Harley-Davidson Example

Trump cited Harley-Davidson motorcycles as a specific illustration of the tariff imbalance, claiming that a 200 per cent import duty had effectively shut American manufacturers out of the Indian market. 'They would charge a 200 per cent tariff,' he said. 'So Harley Davidson was precluded. They ended up going to India and building their own plants.'

He contrasted that arrangement with what he described as the current approach under his administration: 'They charged tremendous amounts of tariffs to our — and we didn't charge them anything. And now it's the exact reverse, and we're making a lot of money with India.'

Negotiating Context

The comments arrive amid growing expectations in both Washington and New Delhi that negotiators are narrowing differences on a bilateral trade package aimed at expanding market access and resolving long-running tariff disputes. Both governments have publicly emphasised the importance of strengthening economic ties alongside cooperation in defence, technology, energy, and critical supply chains.

Notably, Rubio's India visit had already generated speculation that the two sides were close to a framework agreement, making Trump's remarks the most direct public confirmation yet of the deal's momentum.

The Modi-Trump Personal Dynamic

Trump's comments also underscored the personal rapport he has frequently highlighted with PM Modi. During his first term, the two leaders shared high-profile public platforms — the 'Howdy Modi' gathering in Houston in 2019 and the 'Namaste Trump' event in Ahmedabad in 2020 — a dynamic that observers say continues to shape the tone of bilateral engagement.

With both sides signalling intent, the focus now shifts to whether negotiators can translate political goodwill into a concrete, signed framework in the weeks ahead.