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Davos 2026: Trump praises Modi but his tariffs keep coming: Is US president playing 'praise and punish' game with India?

Donald Trump praised PM Narendra Modi and expressed confidence in a US-India trade deal, but negotiations remain stalled as India refuses to compromise on domestic industries. Despite warm rhetoric, Trump has imposed and threatened steep tariffs over Russian oil and Iran trade.

At Davos, Trump calls PM Modi ‘fantastic leader’
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(Photograph: AFP)

At Davos, Trump calls PM Modi ‘fantastic leader’

US President Donald Trump once again expressed confidence on a “good” trade deal with India and called Prime Minister Narendra Modi a “fantastic leader" and a “great friend.” In response to a question on the India-US trade deal, Trump said, “I have a great respect for your prime minister (Modi). He is a fantastic man and a friend of mine. We are gonna have a good deal." However, just days ago, he threatened countries including India for trading with Iran

Trump's 'praise and punish' approach
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(Photograph: AFP)

Trump's 'praise and punish' approach

Trump has been following a ‘praise and punish’ approach when it comes to India, in his second term. Several times during the first year of his second term, he has heaped PM Modi with praises, however, his good friendship has not been visible when it came to the tariff regime. He first imposed a 25 percent reciprocal tariff, then punished India with another 25 percent for buying Russian oil. All this in midst of immense praise for country's leader PM Modi.

'Modi knows it is important to make me happy': Trump
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(Photograph: AFP)

'Modi knows it is important to make me happy': Trump

In early January, Trump claimed that Prime Minister Modi reduced India's imports of Russian oil because "he knew I was not happy, and it was important to make me happy." He said that Modi is a “very good man” and he will always be friends with him.

'Modi is a great man': Trump
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(Photograph: AFP)

'Modi is a great man': Trump

At the White House in November 2025, Trump referred to Modi as a “great man” and even hinted at a potential visit to India in 2026. Trump formally invited Modi to his "Board of Peace" to help resolve global conflicts, calling it an "honour" to have him involved.

'Modi is a great friend': Trump
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(Photograph: AFP)

'Modi is a great friend': Trump

At Diwali event in the Oval Office in October 2025, Trump called PM Modi a "great person" and a “great friend” and made a controversial claim that India would "not buy much oil from Russia" moving forward.

'Modi nicest human being and total killer': Trump
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(Photograph: AFP)

'Modi nicest human being and total killer': Trump

In an interview in 2024, Trump described Modi as the "nicest human being" but also a "total killer" when it comes to defending India. He remarked that while Modi looks like a "father figure" on the outside, he is "tough and smart" on the inside.

Trump's 50 percent tariff on India
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(Photograph: AFP)

Trump's 50 percent tariff on India

While Trump has praised PM Modi, he has also labeled India a "very big abuser" of trade. In August 2025, Trump cited India’s high import duties on American products and imposed a 25 percent tariff. Later that month, he imposed an additional 25 percent tariff on India as penalty for India’s continued "direct or indirect" importation of Russian oil and military equipment. These two tiers combined to create a 50 percent total tariff for most Indian exports

Trump's new tariff threat and trade deal
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(Photograph: AFP)

Trump's new tariff threat and trade deal

While Trump has been insisting that he is soon going to strike a “good deal” with India, the talks seems to be in limbo with Indian government clearly stating that it won't compromise with the country's domestic industry, including agriculture. At the same time, Trump has issued a new threat, saying that the United States will impose a 25 per cent tariff on any country that continues to "do business" with Iran. If imposed, this will take India's tariff to a 75 percent making India one of the most tariffed country.