In a significant development for international trade relations, United States President Donald Trump has indicated that America and India are moving closer to finalizing a comprehensive trade agreement. The announcement comes months after the US imposed tariffs on Indian goods, marking a potential thaw in trade tensions between the two economic powers.
Trump's Announcement During Ambassador Ceremony
President Trump made these revealing comments during the swearing-in ceremony of Sergio Gor as the US Ambassador to India on Tuesday, November 11. The US President expressed optimism about the ongoing trade negotiations, stating that both countries were "pretty close to doing a deal that is good for everybody."
"We're making a deal with India. Much different than we had. Right now they don't love me but they will love us again," Trump remarked with characteristic candor. He acknowledged India's negotiation skills, directly addressing the newly appointed ambassador: "They're very good negotiators so Sergio you will have to take a look at that."
Tariff Reduction Promise and Russian Oil Context
When questioned about the timeline for finalizing the trade agreement, President Trump specifically addressed the contentious tariff issue. He confirmed that the United States would lower tariffs on India "at some point", linking the current high tariffs to India's previous dealings with Russian oil.
"Well, 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. Yeah, we're going to be bringing the tariffs down. At some point, we're going to be bringing them down," the President explained.
Ongoing Negotiations and Bilateral Trade Goals
The trade discussions between the two nations have been progressing steadily through diplomatic channels. Union Commerce Minister Piyush Goyal had earlier indicated on November 5 that talks were "going on very well" while acknowledging the complexity of the negotiations.
"Talks are going on very well. There are many sensitive issues, many serious issues, so naturally, it takes some time," Minister Goyal told ANI when providing an update on the India-US trade discussions.
The bilateral trade agreement, which was formally proposed in February following directives from leaders of both countries, has ambitious targets. The agreement aims to more than double trade volumes from the current $191 billion to $500 billion by 2030, representing one of the most significant trade partnerships in the region.
Recent Diplomatic Engagements
Trade negotiations have been actively pursued through multiple channels in recent months:
- Five rounds of talks have been completed since March for the first phase of the bilateral trade agreement
- Virtual discussions occurred between negotiators of both countries on October 23
- Commerce and Industry Minister Piyush Goyal led high-level trade negotiations in the United States during September
- A US delegation led by Assistant US Trade Representative Brendan Lynch held "positive and forward-looking" discussions in New Delhi in mid-September
Both nations have committed to intensifying efforts to achieve early conclusion of what they describe as a "mutually beneficial trade agreement." The initial timeline had envisioned signing the first phase of the agreement by "fall of 2025," but recent developments suggest potential acceleration of this schedule.
The progression of these trade talks represents a crucial development in international economic relations, particularly given the strategic importance of both nations in the global economy. The potential reduction of tariffs and finalization of a comprehensive trade agreement could significantly impact bilateral trade flows and strengthen economic cooperation between the world's largest democracy and its most powerful economy.
