Historic US-India Trade Agreement Receives High Praise from Ambassador Sergio Gor
In a significant development for international trade relations, US Ambassador to India Sergio Gor has enthusiastically welcomed the newly announced bilateral trade agreement between the United States and India, describing the partnership between the two nations as possessing "limitless potential". This statement comes directly following President Donald Trump's official announcement of a comprehensive trade deal that dramatically reduces American tariffs on Indian goods while establishing new frameworks for energy and technology cooperation.
Major Tariff Reduction Signals New Era in Trade Relations
President Trump revealed through his Truth Social platform that US tariffs on Indian products would be substantially lowered from 50 percent to just 18 percent, marking what he called a "significant breakthrough" in ongoing trade negotiations between Washington and New Delhi. This substantial tariff reduction represents one of the most significant trade concessions made by the United States in recent years and is expected to provide substantial relief to Indian exporters across multiple sectors.
In addition to the tariff reductions, the agreement includes a major commitment from India to cease purchasing Russian oil and instead procure $500 billion worth of American energy and technology products. This component of the deal represents a strategic realignment with significant implications for global energy markets and geopolitical relationships.
Leadership Chemistry Drives Successful Negotiations
Ambassador Gor, speaking exclusively to CNN News 18, emphasized that the successful conclusion of these complex negotiations was largely attributable to the strong personal relationship between President Trump and Prime Minister Narendra Modi. "All credit goes to President Trump and PM Modi," Gor stated. "Since I arrived in India about a month ago, I have said that the two leaders have a great personal relationship and that is something that carried this deal forward."
The US ambassador further elaborated on the significance of the tariff reduction, noting: "I am thrilled that India is getting this 18 percent (tariffs), which is a massive drop from the previous number. And so as I have said since I arrived the best is yet to come."
Clarifications on Additional Tariffs and Strategic Implications
Addressing questions about previously imposed additional tariffs, Ambassador Gor confirmed that the 25 percent additional tariffs on Indian goods would no longer apply under the new arrangement. He explained: "That is correct. As you saw in the Truth of the President wrote, part of the agreement is that all nations around the world stop buying oil from Russia in order to bring peace. I know the Prime Minister deeply cares about bringing peace in that conflict, as does President Trump. So the number as it gets finalised will be 18 percent."
Strategic Realignment and Economic Integration
The comprehensive agreement represents a major strategic shift in US-India relations with implications extending far beyond simple tariff reductions:
- Economic Integration: India's commitment to purchase $500 billion in American energy and technology products signals deeper economic integration with the United States
- Geopolitical Alignment: The agreement strengthens Washington's efforts to economically isolate Russia while bolstering partnerships in the Indo-Pacific region
- Export Relief: The sharp tariff reduction provides substantial relief to Indian exporters and enhances the competitiveness of 'Made in India' products in the American market
- Strategic Partnership: The deal underscores the growing strategic importance of the US-India relationship during a period of heightened global uncertainty
Positive Reactions from Leadership
Prime Minister Narendra Modi welcomed the development with enthusiasm, expressing gratitude to President Trump and stating he was "delighted" by the reduction in tariffs on Indian goods. Ambassador Gor echoed this sentiment on social media platform X, posting: "As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend! Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL!"
The announcement follows a meeting between External Affairs Minister S Jaishankar and Ambassador Gor in New Delhi on January 29, 2026, highlighting the ongoing diplomatic engagement that paved the way for this historic agreement.
