Donald Trump announced the US is ‘pretty close’ to a fair trade deal with India, promising to reduce punitive tariffs. Unpack the connection between US tariffs, Russian oil imports, and the future of the $191 Billion India-US economic partnership.
US-India Trade Deal
In a significant development for global commerce and the US-India economic partnership, President Donald Trump announced that the United States is on the cusp of finalizing a comprehensive US-India Trade Deal. The statement, made during the swearing-in ceremony of Sergio Gor as the new US Ambassador to India, was laced with characteristic political flair, yet delivered a crucial message: the punitive tariffs currently levied on Indian goods are set to be reduced.
Addressing reporters at the Oval Office, Trump stated, “Right now they don’t love me, but they’ll love us again. We’re getting a fair trade deal.” He acknowledged that the existing Trump India Tariffs are “very high” but assured that “at some point, we’re going to be bringing them down.” This move signals a potential thaw in the trade friction that has complicated relations between Washington and New Delhi for the better part of the last few years.1
The most notable long-tail keyword in Trump’s remarks was the explicit linkage between the high tariffs and India’s energy policy. He specifically cited India’s purchase of crude oil from Russia, an issue that had previously led his administration to impose steep tariffs of up to 50% on various Indian imports. Trump claimed that New Delhi has “stopped doing the Russian oil,” or at least “reduced [it] very substantially.”
