Washington / New Delhi — President Donald Trump said the United States and India are nearing completion of a trade agreement that could lower import duties on several Indian goods, signaling renewed cooperation after months of tension over tariffs and energy policy.
Speaking at the swearing-in ceremony of Sergio Gor as the new U.S. ambassador to India, Trump said discussions between both governments had entered their final stages. “We’re getting pretty close to doing a deal that’s good for both sides,” he said. “Right now, they don’t love me, but they’ll love us again,” he added, referring to past disagreements on trade and oil imports.
The two countries have been in prolonged talks since Washington raised tariffs on Indian exports earlier this year, in some cases up to 50 percent. The move was intended to pressure New Delhi to scale back purchases of Russian crude oil. The decision strained relations between two key strategic partners already at odds over market access and agricultural imports.
Trump now says that India has made substantial progress on that front. “They’ve reduced the Russian oil very substantially,” he said. “We’re going to be bringing the tariffs down, at some point.” The comment suggests the White House may be preparing to roll back some of the duties imposed during the standoff.
Officials involved in the negotiations said both sides have held multiple rounds of talks in recent weeks. According to a senior Indian trade official, discussions have focused on tariff relief for goods such as textiles, pharmaceuticals, and machinery, as well as smoother access for U.S. agricultural and technology exports. “Negotiations are progressing well, and we are awaiting a response from the U.S.,” the official said on Tuesday.
The easing of tensions follows a notable shift in India’s oil sourcing. Government data show Indian refiners reduced Russian crude imports by nearly 30 percent in October after Washington imposed new sanctions on Moscow’s energy sector. Analysts say the reduction helped create space for progress in trade discussions that had been stalled since midyear.
At Tuesday’s ceremony, Trump praised Ambassador Gor’s early engagement with Prime Minister Narendra Modi, describing their relationship as “friendly and productive.” He said Gor’s mandate will include deepening economic cooperation, expanding investment, and promoting U.S. energy exports to India.
The United States remains India’s largest trading partner, with two-way trade exceeding $190 billion last year. Indian exports to the U.S. — led by engineering goods, IT services, and pharmaceuticals — make up nearly one-fifth of the country’s total exports. For Washington, India is a growing market for energy, defense, and advanced manufacturing, and a key ally in maintaining supply chain stability in Asia.
Negotiators expect to wrap up the current round of talks before the end of the year. A successful outcome could see tariff revisions announced in early 2026, according to officials briefed on the discussions. Both governments view the potential deal as a step toward stabilizing trade ties that have fluctuated over the past three years, with Washington eager to secure more predictable access to the Indian market.
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