Is a Fair Trade Deal Between the US and India on the Horizon? Trump Thinks So!

Progress on US-India Trade Relations

New York/Washington: President Donald Trump has indicated that the United States is nearing a 'fair trade deal' with India, suggesting that he plans to reduce tariffs imposed on the country 'at some point.'

During a ceremony in the Oval Office for the swearing-in of Sergio Gor as the new US Ambassador to India, Trump remarked, 'We’re making a deal with India, which is quite different from what we had before. They may not be fond of me now, but they will come around again.'

Trump emphasized the importance of achieving a fair agreement, stating, 'We had some pretty unfair trade deals in the past. They are skilled negotiators, Sergio, so keep that in mind.'

He expressed optimism about the negotiations, telling Treasury Secretary Scott Bessent, 'I think we’re very close to finalizing a deal that benefits everyone.' Bessent agreed with Trump’s assessment.

Reflecting on past administrations, Trump questioned whether former President Joe Biden would have inquired about India's status, implying a lack of knowledge about the country.

When asked about the high tariffs on India, Trump explained that they were elevated due to the situation with Russian oil, which India has significantly reduced its imports of. 'We will be lowering the tariffs,' he assured.

'At some point, we will bring them down. Without tariffs, this country would face significant challenges as it did for many years.'

The relationship between New Delhi and Washington has faced considerable strain following Trump's imposition of 50% tariffs on India, including a 25% tariff related to India's Russian oil purchases.

India has criticized the US actions as 'unfair, unjustified, and unreasonable,' asserting that its energy policies are driven by national interests.

So far, five rounds of discussions have taken place regarding the initial phase of the bilateral trade agreement between the two nations.

An official in New Delhi recently stated that both countries are 'very close' to finalizing the proposed trade agreement, with most issues being resolved and only the language of the agreement needing clarification.