Sergio Gor, President Trump's pick for the next US Ambassador to India, has indicated that the United States and India are close to reaching a trade agreement. During his Senate confirmation hearing, Gor stated that the two countries are currently discussing the "nitty-gritty" details of a deal, suggesting that major hurdles have been cleared.

This positive assessment comes amid ongoing trade tensions between the two nations, primarily stemming from India's continued purchase of Russian oil. The US has been exerting pressure on India to cease these imports, with some officials linking progress on a broader trade deal to this condition. US Commerce Secretary Howard Lutnick stated that a trade agreement with India could advance as soon as New Delhi stops buying oil from Russia. Lutnick had previously taken a tougher stance on India, suggesting that India would eventually "say sorry" and return to the negotiating table to resolve trade issues.

Despite these tensions, recent exchanges between President Trump and Prime Minister Modi suggest a potential thaw in relations. Trump referred to Modi as a "dear friend" and expressed confidence in reaching a "successful conclusion" to trade negotiations. Modi reciprocated, affirming that India and the US are "close friends and natural partners" and expressing optimism that trade talks will unlock the "limitless potential" of the India-US partnership.

In a recent social media post, Trump stated that the U.S. and India are continuing negotiations to address trade barriers. Modi responded, reiterating India's commitment to working together for a brighter and more prosperous future for both countries.

Trade talks are expected to resume soon, with India's chief trade negotiator, Rajesh Agarwal, planning to visit Washington for further discussions. However, uncertainty remains regarding potential US tariff concessions.

Notably, President Trump has imposed a 50% tariff on all goods imported from India, adding to the existing 10% import duty. As of August 6, 2025, the US has imposed a 25% import duty on India through an executive order, with additional tariffs taking effect on September 27, 2025. Trump attributed these tariffs to India's significant purchases of military equipment and crude oil from Russia, claiming that India is enabling Russia in the war against Ukraine through these oil purchases. India has maintained its stance on continuing to buy Russian oil despite the tariffs.

Sergio Gor's nomination as ambassador to India has been welcomed by business interests, who view it as a sign of commitment to strengthening the relationship and addressing trade issues. India's ambassador to the US, Vinay Kwatra, also welcomed the nomination, highlighting the importance of India-US ties.

Union Commerce Minister Piyush Goyal has stated that negotiations for the India-US bilateral trade agreement are moving in a positive direction, with both countries satisfied with the progress. Goyal anticipates the first phase of the BTA to be finalized by November 2025.