President Donald J. Trump hosts Prime Minister Narendra Modi of India at the White House The White House - https://www.flickr.com/photos/202101414@N05/54327769315/ Wikimedia Commons

US President Donald Trump has expressed confidence that Washington and New Delhi will soon reach a trade agreement, while also delivering a pointed assessment of the economic relationship between the two countries.

Speaking on Thursday, Trump claimed that India had benefited from trade arrangements with the United States for years, before arguing that the balance had now shifted.

Despite the criticism, the President made clear that his personal relationship with Prime Minister Narendra Modi remained strong. His remarks came as officials from both countries continued discussions aimed at finalising a bilateral trade deal.

The latest round of negotiations followed a four-day visit by representatives from the Office of the United States Trade Representative to New Delhi between June 1 and June 4. The talks covered several areas of economic cooperation and took place against the backdrop of wider issues involving trade enforcement, Russian oil imports, and ongoing discussions over tariffs. But India is refusing to buckle under Trump's pressure.

Trump Signals Confidence In Trade Agreement

Trump struck a positive tone about the future of trade ties with India, even as he revisited long-standing complaints about tariffs.

'For years, India took advantage of the United States,' Trump said. 'They charged us tremendous tariffs and paid nothing. Now it is the exact reverse, and we are making a lot of money with India.'

While criticising what he viewed as past trade arrangements, Trump indicated that negotiations were moving in the right direction and suggested a deal was likely.

'But we will get to a deal because I like your Prime Minister [Narendra Modi] a lot. He is a good friend of mine, and we get along well. We have a good relationship,' he added.

His comments came shortly after fresh trade discussions between Indian and American officials. According to a government statement, the recent visit by United States Trade Representative officials helped advance negotiations on a proposed bilateral agreement.

Officials from both countries discussed a broad range of topics during the talks. These included market access, non-tariff barriers, customs procedures, trade facilitation measures, and economic security cooperation.

The discussions are taking place as both governments seek to strengthen commercial ties while addressing areas of disagreement that have complicated negotiations in recent years.

At the same time, Washington has raised concerns about imports allegedly linked to forced labour. The United States this week identified 60 economies, including India, for failing to effectively curb imports produced with forced labour.

India was listed among 54 economies alongside Australia, China, Japan, Saudi Arabia, Singapore, the United Kingdom, and the United Arab Emirates.

US Trade Representative Ambassador Jamieson Greer criticised what he described as inadequate action by major trading partners.

'The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,' Greer said.

India Waves Off Trump's Scare Tactics About Russian Oil

Trade negotiations are also unfolding while Washington reviews a waiver that allows several countries, including India, to purchase Russian oil.

US Secretary of State Marco Rubio told Congress that the exemption was always intended to be temporary.

'We would like to end it as soon as we possibly can because the underlying policy of this country has been to sanction their oil. These are time-limited waivers for the purpose of opening up more global supply,' Rubio said on Wednesday.

The waiver was first introduced in March and has since been extended twice. It is currently scheduled to expire on June 17. Rubio said any decision regarding a further extension would be made by the US Treasury Department.

The exemption was granted to reduce disruption in global energy markets caused by the US-Israeli war in West Asia and restrictions around the Strait of Hormuz. India resumed purchases of Russian oil under the waiver after energy supplies from the Gulf region were affected.

Russian oil imports have also featured prominently in discussions between New Delhi and Washington.

Earlier, Trump imposed an additional 25 per cent tariff on imports from India, arguing that Indian purchases of Russian oil were helping to finance Russia's war in Ukraine. The measure was later withdrawn after India committed to ending imports of Russian oil, according to a White House fact sheet. The document outlined the administration's reasoning for removing the tariff.

'President Trump agreed to remove the additional 25% tariff on imports from India in recognition of India's commitment to stop purchasing Russian Federation oil. Accordingly, the President signed an Executive Order last Friday removing that additional 25% tariff,' the White House document said.

Despite the White House linking the tariff removal to India's reported commitment to stop buying Russian oil, Indian officials have continued to defend purchases of Russian crude as a matter of energy security and commercial interest.

In May, a senior Petroleum Ministry official said India had continued to purchase Russian oil despite US sanctions waivers. The official stated that India bought Russian crude before, during, and after the waiver, indicating that supply decisions remained driven by market conditions and national requirements.

Recent reports have also indicated that Russian oil remains part of India's import mix. Indian officials have repeatedly maintained that crude purchasing decisions are based on factors such as price, availability, logistics, and energy security rather than political pressure.

The position highlights a gap between Washington's efforts to reduce Russian energy revenues and New Delhi's long-standing argument that affordable energy supplies remain a national priority. While Russian oil has featured prominently in trade discussions between the two countries, India has continued to show that it intends to make energy purchasing decisions based on its own economic interests rather than on alleged scare tactics by Trump.