US President Donald Trump indicated on Monday that the trade dispute with India may be nearing a resolution, stating that the US was getting “pretty close” to a new trade deal with New Delhi. Crucially, Trump also hinted that the punitive tariff rate imposed on Indian goods earlier this year would be reduced “at some point.”
The President made the comments during the swearing-in ceremony of Sergio Gor as the new US Ambassador to India, saying, “We’re making a deal with India. Much different than we had… We’re getting a fair deal. I think we’re pretty close to doing a deal that’s good for everybody.”
The Tariff Dispute and Russian Oil
The relationship between the two nations has been strained since the Trump administration imposed additional tariffs on Indian exports, raising the rates on many Indian goods to a high of 50%. This rate includes an additional penalty levied primarily to pressure New Delhi to reduce its purchases of Russian crude oil.
President Trump claimed that this primary sticking point is being resolved, stating:
“Well, right now, 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… Yeah, we’re going to be bringing the tariffs down, I mean at some point.”
While India’s Ministry of External Affairs previously denied any assurance given by Prime Minister Narendra Modi to stop buying Russian oil, recent reports suggest major Indian refiners have cut back on December delivery orders following new US sanctions targeting Russian oil firms. This suggests a potential response to American pressure, which Trump has publicly praised.
New Ambassador to Fortify Ties
The announcement was made as Sergio Gor, the former head of Trump’s personnel office, was sworn in as the US Ambassador to India. Trump said Gor had already developed a “friendly” relationship with Prime Minister Narendra Modi.
The President outlined the goals for the new Ambassador’s tenure:
- Fortify bilateral bonds and strengthen the strategic partnership.
- Promote investments in key US industries and technologies.
- Increase American energy exports.
- Expand security cooperation.
Union Commerce Minister Piyush Goyal recently gave an update on the talks, stating that discussions on the Bilateral Trade Agreement are “going on very well,” despite the presence of “many sensitive and serious issues” that require time to resolve. Both nations are working toward a deal aimed at more than doubling bilateral trade to $500 billion by 2030.