In a significant signal towards reshaping Indo-U.S. trade relations, the U.S. President Donald Trump has hinted at possible tariff reductions as part of a forthcoming “fair trade deal” with India. Speaking during the swearing-in of Sergio Gor as the new U.S. Ambassador to India, Trump stated that both nations were “pretty close” to finalising an agreement, calling it “a much different deal than we had in the past.”
Trump acknowledged that current tariff levels on Indian goods were “very high” and indicated that his administration intended to lower them “at some point,” adding that the outcome would be “good for everybody.” The deal aims to promote balanced trade and enhance mutual access to markets, signalling a renewed effort to strengthen economic cooperation between the world’s two largest democracies.
Indian Commerce Minister Piyush Goyal confirmed progress in ongoing discussions but admitted that “many sensitive and serious issues” remain unresolved. The proposed tariff cuts could boost Indian exports to the U.S., stimulate investment flows, and reinforce the strategic partnership across trade, technology, and defence sectors. While no formal agreement has yet been announced, Trump’s remarks reflect a potential reset in the bilateral trade equation; one that could open a new chapter in U.S.-India economic engagement.
