Key Takeaways
- President Trump says US and India are “pretty close” to a fair trade deal
- Tariffs will be lowered “at some point” after being imposed over Russian oil purchases
- Five rounds of trade talks completed with both sides converging on most issues
President Donald Trump has announced that the United States is “pretty close” to reaching a “fair trade deal” with India, signaling a potential breakthrough in trade negotiations between the two nations. The President confirmed he plans to lower tariffs on India “at some point,” acknowledging the current high rates were imposed due to India’s previous procurement of Russian oil.
Oval Office Announcement
Trump made the significant announcement during a ceremony where Sergio Gor was sworn in as America’s Ambassador to India by Vice President J.D. Vance. “We’re making a deal with India, much different deal than we had in the past,” Trump stated, adding that while “they don’t love me” currently due to tariffs, “they’ll love us again.”
Addressing Treasury Secretary Scott Bessent, who was present at the swearing-in, Trump emphasized: “I think we’re pretty close to doing a deal that’s good for everybody.” Bessent confirmed this assessment with a simple “That’s right.”
Tariff Reduction Timeline
When questioned about lowering current tariff rates, Trump explained: “Right now the tariffs are very high on India because of the Russian oil, and they’ve stopped doing the Russian oil. It’s been reduced very substantially.”
The President clarified that while tariff reduction is planned, he defended the use of tariffs overall: “Without tariffs, this country would be in such trouble as they were for many years.”
Background: Trade Tensions
US-India relations have faced significant strain since Trump imposed 50% tariffs on India, including 25% specifically targeting New Delhi’s procurement of Russian oil. India had strongly criticized these measures as “unfair, unjustified and unreasonable” while maintaining that its energy policy is guided by national interest.
The trade negotiations have progressed through five rounds of talks for the first phase of the bilateral trade agreement. Last month, officials in New Delhi indicated both countries were “very near” to concluding the proposed agreement, with most issues resolved and only the language of the agreement being finalized.
