Trump Says U.S. Close to Finalising India Trade Deal, Hints at Tariff Cuts

U.S. President Donald Trump announced that the United States is nearing completion of a new trade agreement with India, suggesting possible tariff reductions as part of the deal. He made the remarks during the swearing-in of Sergio Gor as the new U.S. Ambassador to India at the Oval Office on Monday.

Trump Signals Progress in U.S.–India Trade Negotiations

“We’re making a deal with India, a very different one from before,” Trump said. “Right now, they don’t love me, but they will again. We’re getting a fair deal.” He noted that the discussions had advanced to a stage that would benefit both nations and praised the Indian negotiating team, calling the deal “good for everybody.”

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Tariffs Linked to Russian Oil Purchases

Trump explained that the high U.S. tariffs on India were partly due to India’s earlier imports of Russian oil during the Ukraine conflict. “The tariffs are very high on India because of the Russian oil, and they’ve stopped doing the Russian oil. It’s been reduced very substantially,” he stated.
 He expressed optimism about reducing trade barriers, adding, “Yeah, we’re going to be bringing the tariffs down. At some point, we’re going to be bringing them down.”

Trade Tensions and New Economic Goals

The 50% tariffs imposed on select Indian goods earlier this year had strained trade relations and slowed talks between the two countries. The U.S. administration has sought to address what it viewed as India’s excessive energy dealings with Russia.
 Officials hope the new trade agreement will help expand bilateral economic and security ties, boost American energy exports to India, and attract more Indian investments into key U.S. sectors.

Diplomatic Relations and Ongoing Talks

Trump highlighted his good rapport with Prime Minister Narendra Modi and said the new ambassador’s growing friendship with Indian officials would help smoothen the negotiation process.
 Negotiations have been underway for several months, with five rounds of discussions since March 2025. Both sides have expressed cautious optimism as they work toward finalising the agreement in the coming months.