Washington Eyes New Trade Pact With New Delhi, Says Trump

Speaking in South Korea ahead of the Asia-Pacific Economic Cooperation (APEC) summit, former U.S. President Donald J. Trump said that Washington is working on a new trade agreement with India, signaling a possible reset in relations between the two countries.

“I’m doing a trade deal with India, and I have great respect and love for Prime Minister Modi. We have a great relationship,” Trump said during his address, referring to Prime Minister Narendra Modi. His remarks come amid ongoing trade discussions and lingering tensions over American tariffs on Indian goods.

Bilateral trade ties between Washington and New Delhi cooled during Trump’s earlier presidency after he imposed steep tariffs on Indian exports. About 20 percent of those duties were described as penalties linked to what he claimed was India’s indirect support for the war in Ukraine, an assertion that India has consistently denied.

New Delhi has maintained that its energy and trade policies are guided by market conditions and national interests, emphasizing its right to secure affordable energy to sustain economic growth and protect consumer welfare.

During his speech, Trump also recounted his past interactions with Modi during a period of heightened tensions between India and Pakistan. He described Modi as a strong and determined leader, recalling moments that underscored the Indian prime minister’s tough diplomatic stance.

If concluded, the proposed trade pact could help rebuild economic ties and expand cooperation between the United States and India in key sectors such as defense, technology, and clean energy. Analysts say it could also serve as a strategic counterbalance to China’s growing influence in the Indo-Pacific region.

While neither government has offered details or timelines for the deal, Trump’s remarks suggest renewed efforts to revive a partnership that has long been seen as pivotal to the regional balance of power.