US President Donald Trump on Friday expressed optimism regarding the ongoing India-US tariff negotiations and praised Prime Minister Narendra Modi’s leadership, calling him a “very smart man” and a “great friend.” Speaking to reporters during the swearing-in ceremony of US attorney for New Jersey, Alina Habba, Trump commended PM Modi’s leadership, describing him as a “great prime minister.”

“Prime Minister Modi was here just recently, and we’ve always been very good friends,” Trump said. “India is one of the highest tariffing nations in the world… They’re very smart. He (PM Modi) is a very smart man and a great friend of mine. We had very good talks. I think it’s going to work out very well between India and our country. And I want to say you have a great prime minister,” he added.

Trump’s remarks followed Modi’s visit to the US in February, during which both leaders announced plans to negotiate the first tranche of a multi-sector Bilateral Trade Agreement (BTA) by the fall of 2025, aiming to strengthen economic ties between the two nations.

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On Thursday, in a key policy move from the Oval Office, Trump declared a 25 percent tariff on all imported vehicles entering the United States, calling it “very exciting” for domestic manufacturing. Set to take effect on April 2, the tariff will impact nearly half of all vehicles sold in the US, including American brands manufactured overseas. The measure seeks to encourage car manufacturers to expand production within the United States.

Previously, Trump had criticized India for its high tariffs, stating, “they have the highest tariffs” and that it is “a hard place to do business.”

In February, Trump announced plans to impose reciprocal tariffs on countries like India and China, arguing that the US should charge the same tariffs those nations impose on American goods. “We will soon impose reciprocal tariffs—they charge us, we charge them. Whatever a company or a country, such as India or China, charges, we want to be fair; hence, reciprocal,” he said. “We have never done that. We were getting ready to do it until Covid hit.”

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Trump also specifically called out India’s high tariffs on automobile imports, stating, “India charges us auto tariffs higher than 100 per cent.” Addressing a joint session of the US Congress, he confirmed that the reciprocal tax would take effect on April 2. He asserted that the US had been “ripped off for decades by nearly every country on earth” and vowed to prevent it from happening any longer. He also highlighted tariffs imposed by the European Union, China, Brazil, and Mexico, announcing that the US would introduce tariffs on other nations based on their trade practices toward the United States.

(With inputs from ANI)