President Donald Trump has signaled that a breakthrough in the contentious trade dispute between the United States and India may be imminent, stating that the two nations are “pretty close” to reaching a deal that could lead to a reduction in US tariffs.
The optimistic remarks are the latest sign of a potential development in a relationship that has been soured by months of trade friction, including high US tariffs on Indian goods and disputes over market access.
A shift in tone after months of tension
Speaking to reporters on Monday, President Trump projected confidence that a resolution was within reach. “Right now they don’t love me, but they’ll love us again,” Trump said.
We’re getting a fair deal.
He later predicted the nations were “pretty close to doing a deal that’s good for everybody.
The positive tone marks a significant shift from earlier this year, when Trump slapped additional tariffs on Indian exports, raising rates on many goods to 50%.
Those duties were imposed in part to pressure New Delhi to stop buying Russian oil, adding a new layer of tension to an already difficult negotiation over what the US considers to be high barriers to American goods.
Russian oil and easing tensions
A key factor in the recent de-escalation appears to be India’s changing stance on Russian energy. In recent weeks, Trump has said that Indian Prime Minister Narendra Modi has pledged to wind down purchases of Russian crude.
“They’ve stopped doing the Russian oil – it’s been reduced very substantially,” the president said on Monday.
Yeah, we’re going to be bringing the tariffs down, I mean at some point.
This shift comes after the US imposed sanctions on two of Russia’s largest crude producers last month, prompting Indian refiners to begin scaling back the purchases of discounted Russian oil they had been making for the past three years.
With this major point of friction reduced, trade teams from both countries have met multiple times, and officials in New Delhi have expressed cautious optimism that a deal is in sight.
New ambassador to play a key role
Trump’s comments came as he attended the swearing-in ceremony for Sergio Gor, the new U.S. ambassador to India.
The president noted that Gor, the former head of his personnel office, had already developed a “friendly” relationship with Prime Minister Modi.
“As ambassador, Sergio will work to fortify our country’s bonds, promote investments in key US industries and technologies, increase American energy exports and expand our security cooperation,” Trump said.
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