Modi praises Trump while tariff time bomb ticks toward April 2 deadline

As Donald Trump’s tariff war barrels toward its April 2 deadline, global trade tensions are heating up. China has already drawn its battle lines, rolling out a wave of economic stimulus measures — from bigger pensions to improved medical benefits — designed to soften the blow of Trump’s 20% tariffs and falling exports.

But while Beijing braces for impact, India’s strategy is more of wait and watch.

Prime Minister Narendra Modi recently showered warm words for Trump. Speaking on a podcast with Lex Fridman, Modi described Trump as "far more prepared" for his second term, crediting him with a clear roadmap and strategic steps to achieve his goals.

However, Modi's praise comes amid looming reciprocal tariff threats and the fact that Trump has time and again called out India to be among the nations that charge the US the highest tariffs. While Trump has praised Modi often, he has called India a tariff abuser. In the February meeting, Trump and Modi discussed trade issues and the nations are working on a trade deal. Trump, nonetheless, wants actions from India that should be beneficial for his land, including India buying more oil from the US.

Trump's close ally Elon Musk meanwhile also seems to be getting some advantage in India these days. While Tesla is about to enter India, telecom operators Reliance Jio and Bharti Airtel also signed deals with Starlink.

So, is Trump really a good friend for India or is it about 'this is business'?

Trust, tariffs, and tough choices

Trump’s unpredictability has frequently blindsided even his closest allies — Europe being a prime example. Recall when Trump once called Modi a "tough negotiator"? Those words may now be put to the test, as Indian exporters — particularly in automobiles and agriculture — prepare for potential tariff pain.

Despite this uncertainty, Modi and Trump have been working to mend trade ties. After their meeting last month, both leaders agreed to address tariff disputes and push forward with a phased trade deal by fall 2025, targeting $500 billion in two-way trade by 2030. Modi even aligned Trump’s "America First" stance with his own "India First" vision, emphasizing their diplomatic bond.

"He has a clear vision for his country, just like I do for mine — and that's why we connect so well," Modi remarked.

Meanwhile, China isn’t waiting

While India calculates its moves, China is proactively preparing for economic turbulence. Over the weekend, Beijing unveiled a stimulus push aimed at boosting domestic consumption and reducing reliance on exports — a direct response to Trump’s aggressive trade tactics.

With China’s trade surplus nearing $1 trillion last year, Beijing is pivoting from export dependence to domestic growth. But with Trump’s 20% tariffs biting into Chinese shipments — and trade partners across Europe, Latin America, and Africa tightening their own barriers — Beijing’s path forward is anything but smooth.

India’s plan: diversification and digital trade

India is charting its own path by diversifying exports, adding value to products, and exploring alternative markets. According to SBI Research, India’s exports may decline by only 3-3.5% post-tariffs, as the country is leveraging new trade routes via the Middle East and expanding its manufacturing capabilities.

In recent years, India has aggressively pursued Free Trade Agreements (FTAs) to strengthen its position in the global market. Over the past five years, India has signed 13 FTAs, including deals with Mauritius, the UAE, and Australia. Ongoing negotiations with the UK, Canada, and the EU are expected to further expand India’s trade reach.

With a growing focus on digital trade, experts believe this sector alone could contribute $1 trillion to India’s GDP by 2025.

As April 2 approaches, India faces a tough balancing act — does it trust Trump’s roadmap or prepare for a tougher trade war like China? With rising protectionism and shifting alliances, India's negotiation skills may soon face their biggest test yet.

With inputs from agencies