Davos, Switzerland | January 22, 2026
The US President Donald Trump on Thursday expressed confidence that the United States and India will reach a favorable trade agreement, while openly praising Indian Prime Minister Narendra Modi for his leadership.
Speaking to the media after his address at the World Economic Forum annual meeting in Davos, Trump responded to questions about the ongoing India–US trade talks by highlighting his personal rapport with the Indian leader.
“I have a lot of respect for your Prime Minister,” Trump said. “He is a great leader and a good friend. We are going to make a good deal.”
Positive Tone, Lingering Uncertainty
Despite the optimistic remarks, uncertainty continues to surround the finalization of an India–US trade agreement. It has been nearly five months since the United States imposed tariffs of up to 50% on certain Indian exports.
The Trump administration had described these tariffs as a penalty linked to India’s continued purchase of Russian oil. Since then, negotiations between the two countries have remained ongoing, but no clear timeline has emerged for a final agreement.
Trade Talks Still Await Clarity
While Trump’s comments at Davos signal a positive diplomatic tone, analysts note that significant policy differences remain unresolved. It is still unclear when both sides will reach consensus on tariff structures and broader trade terms.
India and the United States continue to engage through diplomatic and trade channels, with expectations that further discussions could pave the way for a comprehensive agreement in the coming months.
