Trump hints at tariff reduction, says US and India nearing a fair trade agreement

The United States and India appear to be inching closer to a major trade breakthrough, with President Donald Trump on Monday signalling that a new bilateral trade deal could soon be finalised — one that may include a gradual reduction in tariffs on Indian goods.

Speaking at the swearing-in ceremony of Sergio Gor, the newly appointed US Ambassador to India, Trump said talks between Washington and New Delhi had made “tremendous progress” and expressed optimism about achieving a “fair and balanced” agreement.

“We’re making a deal with India — a much better one than before. They don’t love me right now, but they will love us again,” Trump said with a smile. “They’re very tough negotiators, but we’re getting a fair deal. Sergio will make sure of that. I think we’re pretty close to a deal that’s good for everyone.”

When asked later about tariff cuts on Indian imports, Trump confirmed the plan was on the table. “Tariffs are currently high because of the Russian oil issue, which India has already reduced significantly. Yes, we’ll be bringing them down — at some point soon,” he said.

The US President also spoke warmly about India’s growing global stature and his rapport with Prime Minister Narendra Modi, describing India as “one of the world’s oldest civilisations and now the largest country in the world.”

Trade Talks Enter Advanced Stage

Trump’s remarks come as negotiators from both sides push to complete the India–US Bilateral Trade Agreement, which aims to boost two-way trade from USD 191 billion to USD 500 billion by 2030.

Commerce Minister Piyush Goyal said last week that discussions were progressing “very well,” though “sensitive and serious issues” still needed to be resolved. The proposed agreement, initiated in February 2025, has already gone through five rounds of talks, including a virtual round on October 23, and a first-phase deal is expected by the end of 2025.

In September, Goyal led an Indian delegation to Washington for meetings with US trade officials, while a parallel American delegation headed by Brendan Lynch, Assistant Trade Representative for South and Central Asia, held follow-up talks in New Delhi.

Both sides described the exchanges as “constructive and forward-looking” and agreed to accelerate efforts toward a comprehensive trade partnership that could reshape the future of India–US economic relations.