Trump signals possible tariff cuts, says fair trade deal with India ‘very close’

The prospect of a new trade breakthrough between India and the United States gained momentum on Monday.

As President Donald Trump said that both nations are “very close” to finalising a fair trade agreement, signalling the possibility of lower tariffs in the near future. Speaking at the swearing-in ceremony of Sergio Gor as the new US Ambassador to India at the Oval Office, Trump said discussions with New Delhi had advanced considerably and that a balanced trade pact was on the horizon.

“We’re making a deal with India — a much better one than before. 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 will have to handle that well. I think we’re pretty close to a deal that works for everyone,” Trump said.

When asked if the US would consider cutting tariffs on Indian goods, Trump said the move was likely once trade adjustments stabilised. “The tariffs are high right now because of the Russian oil situation — which India has reduced substantially. Yes, we’re going to bring the tariffs down. It’s going to happen,” he added.

The President also highlighted India’s growing global influence, calling it “one of the world’s oldest civilisations and the largest democracy with over 1.5 billion people.” Praising his ties with Prime Minister Narendra Modi, he said, “We have a fantastic relationship, and Sergio has already deepened that friendship.”

Trade Talks Back on Track

Trump’s comments come as trade negotiations between the two countries have entered an advanced phase. On November 5, Commerce Minister Piyush Goyal confirmed that talks on the India–US Bilateral Trade Agreement were “progressing well,” though “sensitive and serious issues” were still under discussion.

The proposed pact, first introduced in February 2025, aims to boost bilateral trade from USD 191 billion to USD 500 billion by 2030. So far, five rounds of negotiations have been held, including a recent virtual session on October 23, with a first-phase agreement expected by end-2025.

In September, Goyal led an Indian delegation to Washington for high-level discussions with US officials. Around the same time, a US team led by Brendan Lynch, Assistant Trade Representative for South and Central Asia, held what both sides described as “positive and forward-looking” talks in New Delhi.

Both countries have now agreed to accelerate efforts to finalise a comprehensive, mutually beneficial trade framework, signalling what could become the most significant India–US economic partnership in recent years.