A much different deal: Donald Trump says US India pact near, hints at dropping Russian oil tariffs

President Donald Trump has said the United States is nearing a new trade deal with India that could reshape economic and security ties between the two nations.

At the Oval Office, during the swearing-in of Sergio Gor as the new U.S. ambassador to India, Trump called the agreement “a fair trade deal,” describing it as a major shift from previous arrangements. “We’re making a deal with India, a much different deal than we had in the past,” Trump said.

He described U.S.-India relations as “one of our country’s most important international relationships,” emphasizing Gor’s role in reinforcing that partnership. “It’s a big deal,” Trump added, hinting at an upcoming trip to India.

Trump hailed India’s economic rise and strategic importance, calling it “home to one of the world’s oldest civilisations” and “the fastest growing middle class.” He cited New Delhi’s population of over 1.5 billion and praised his ties with Prime Minister Narendra Modi. “We have a fantastic relationship with Prime Minister Modi, and Sergio has already enhanced that by becoming friendly with him,” Trump said.

On trade penalties linked to India’s Russian oil imports, Trump said tariffs imposed earlier this year could be rolled back. “Right now, the tariffs are very high on India because of the Russian oil,” he noted. “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.”

Washington imposed up to 50% tariffs on Indian imports earlier this year, including a 25% penalty specifically tied to India’s continued purchase of Russian crude. Trump claims Modi assured him that those purchases would decrease, but no such confirmation has come from India’s Ministry of External Affairs or other official channels.