'We're pretty close': Trump signals breakthrough in US-India trade talks
What's the story
United States President Donald Trump has hinted at a possible trade breakthrough with India. Speaking during the swearing-in ceremony of Sergio Gor as the new US Ambassador to India, Trump said both nations are nearing a "fair deal." He said, "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. I think we're pretty close to doing a deal that is good for everybody."
Tariff reduction
US to reduce tariffs on Indian imports
Trump also hinted that the US would eventually reduce tariffs on Indian imports. He said current high tariffs are due to Russian oil imports, which have been reduced significantly. "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," he said.
Trade negotiations
BTA aims to increase trade volumes to $500 billion
This comes as trade talks between the two nations continue to progress toward a Bilateral Trade Agreement (BTA). India's Commerce and Industry Minister Piyush Goyal has confirmed that talks on the BTA are "going on very well." However, he acknowledged that there are still "many sensitive and serious issues" under discussion. The BTA aims to increase trade volumes from $191 billion to $500 billion by 2030.
Diplomatic efforts
Senior US and Indian trade officials held talks in September
Five rounds of talks have been held since March, with a first-phase deal expected by the end of 2025. In September, Goyal led a senior Indian delegation to Washington to further the talks. The team included Special Secretary and Chief Negotiator Rajesh Agrawal. Around the same time, a US team led by Assistant Trade Representative for South and Central Asia Brendan Lynch also held "positive" discussions with India's Department of Commerce in New Delhi.