Trump Indicates Trade Deal with India "Pretty Close," Hints at Tariff Reductions
Washington D.C. – U.S. President Donald Trump has signaled that the United States and India are nearing a trade agreement, suggesting that tariff reductions on Indian goods could be on the horizon. Speaking at the swearing-in ceremony of Sergio Gor, the new U.S. Ambassador to India, President Trump expressed optimism about the ongoing trade negotiations.
"We're making a deal with India, much different than we had," Trump stated, adding, "Right now they don't love me, but they'll love us again. We're getting a fair deal,". He predicted that the nations were "pretty close to doing a deal that's good for everybody".
These comments suggest a potential thaw in trade relations between the two countries, which have experienced some friction due to tariffs and trade policies. Earlier in the year, the U.S. imposed higher tariffs on Indian exports, with rates on some goods reaching 50%, partly in response to India's continued purchase of Russian oil.
However, Trump has recently acknowledged that Prime Minister Modi has pledged to reduce India's crude oil imports from Russia, paving the way for a more constructive dialogue on trade. "They've stopped doing the Russian oil - it's been reduced very substantially," the President noted. "Yeah, we're going to be bringing the tariffs down, I mean at some point".
The proposed trade agreement, which was initially proposed in February 2025, seeks to more than double trade volumes between the two nations from the current $191 billion to $500 billion by 2030. Both governments have held five rounds of talks with the goal of completing the first phase of the agreement by November 2025.
India's Commerce and Industry Minister Piyush Goyal has also commented on the negotiations, stating that discussions on the Bilateral Trade Agreement are "going on very well". However, he also acknowledged that "many sensitive and serious issues" remain, which will require more time to resolve.
The agreement aims to boost U.S. energy exports, promote investment in key American industries and technologies, and expand security ties with India. Trump highlighted India's rapidly growing middle class and its strategic importance in the Indo-Pacific region as key factors driving the pursuit of a comprehensive trade deal.
Meanwhile, Indian officials are closely monitoring a U.S. Supreme Court case challenging President Trump's authority to impose tariffs, assessing the potential impact on the ongoing trade negotiations. The U.S. remained India's largest trading partner in 2024-25, with bilateral trade valued at $131.84 billion.
