US President Donald Trump on Monday signalled that Washington and New Delhi are nearing a trade breakthrough, saying both sides are making “significant progress” toward a balanced agreement. Speaking at the Oval Office during the swearing-in ceremony of Sergio Gor as the new US Ambassador to India, Trump said the United States would eventually reduce tariffs on Indian imports, marking a shift toward normalising economic ties after months of tough negotiations.
“We’re making a deal with India — much different than we had,” Trump said. “Right now, they don’t love me, but they will love us again. We’re getting a fair deal. They’re very good negotiators, so Sergio, you’ll have to take a look at that. I think we’re pretty close to doing a deal that is good for everybody.”
In response to questions from reporters, Trump acknowledged that tariffs on Indian imports had been elevated because of New Delhi’s earlier purchases of discounted Russian oil but said the situation had changed. “It’s been reduced very substantially,” he said. “Yeah, we’re going to be bringing the tariffs down. At some point, we’re going to be bringing them down.”
Calling India “home to one of the world’s oldest civilisations” and “the largest country in the world,” Trump emphasised his close relationship with Prime Minister Narendra Modi, saying, “We have a fantastic relationship with Prime Minister Modi, and Sergio has already enhanced that because he’s become friendly with the Prime Minister.”
The remarks come as bilateral trade negotiations, which have been ongoing for months, gain momentum. On November 5, India’s Commerce and Industry Minister Piyush Goyal said talks on the India–US Bilateral Trade Agreement were progressing well but still involved several “sensitive and serious issues.” “There are many sensitive issues, many serious issues, so naturally, it takes some time,” Goyal told reporters.
The agreement, first proposed in February 2025, seeks to expand trade between the two countries from the current USD 191 billion to USD 500 billion by 2030. Five rounds of talks have been held so far, including a virtual round in October, with negotiators aiming to finalise the first phase of the deal by the end of 2025.
In September, Goyal led a high-level delegation to Washington for in-person discussions with senior US officials, including Assistant Trade Representative for South and Central Asia Brendan Lynch. Both sides described the talks as “positive and forward-looking,” with consensus emerging on several key issues such as market access, technology transfer, and energy cooperation.
Officials familiar with the negotiations say the proposed deal will cover tariff reductions, intellectual property protection, investment facilitation, and regulatory harmonisation. Washington has also pressed for greater access to India’s agricultural and digital services markets, while New Delhi has sought lower duties on steel, textiles, and pharmaceuticals.
Trump’s comments — paired with Gor’s appointment — reflect growing optimism that the world’s two largest democracies are moving toward a comprehensive trade framework that could redefine economic cooperation for the next decade.
