US Ambassador to India Sergio Gore on Monday described India-US relations as having “unlimited potential” following President Donald Trump’s announcement of a new bilateral trade deal that sharply lowers US tariffs on Indian goods and signals a sea change in energy and technology cooperation.
Tariffs reduced as Washington DC and New Delhi Seal Deal
President Trump announced that US tariffs on Indian products will be reduced from 50 percent to 18 percent, which he described as a major breakthrough in trade negotiations between the two countries. The announcement was made through a post on the President’s Truth Social platform.
The US president also said India had agreed to end purchases of Russian oil and would instead buy $500 billion worth of US energy and technology products as part of a broader deal.
In Delhi, Prime Minister Narendra Modi welcomed the development, thanked President Trump and said he was “delighted” by the reduction in tariffs on “Made in India” goods.
“Limitless Potential”: Ambassador Gor reacts
In response to the announcement, Sergio Gor used the X social media platform to highlight the personal relationship between the two leaders and the strategic promise of the partnership.
“As I have said many times, President Trump truly considers PM Modi a great friend! The news of the trade deal tonight was exciting. The relationship between the United States and India has UNLIMITED POTENTIAL!” Gor said in a post on social media platform X.
Personal chemistry drove the deal, Gor says
Speaking to CNN News 18, the US ambassador credited the agreement to the close working relationship between President Trump and Prime Minister Modi, which he said helped move the negotiations forward.
“All credit goes to President Trump and Prime Minister Modi. I’ve said since I came to India about a month ago that the two leaders have a great personal relationship and that’s something that has moved this deal forward,” Gor told CNN News 18.
He also highlighted the extent of tariff cuts and termed it a big win for India.
“I am thrilled that India is getting this 18 percent (tariff), which is a huge drop from the previous number. And as I have said since I arrived, the best is yet to come,” Gor said.
Clarity on additional tariffs and Russian oil
Responding to questions about whether the additional 25 percent tariffs on India had been lifted, Gor confirmed that they would no longer apply under the new arrangement.
“That’s right. As you saw in the Truth of President wrote, part of the deal is that all nations around the world stop buying oil from Russia to bring peace. I know the Prime Minister cares very much about bringing peace to this conflict, as does President Trump. So the number as finalized will be 18 percent.”
Strategic and economic implications
The deal represents a significant shift in US-India trade relations, with implications beyond tariffs to global energy markets and geopolitical relations. By committing to large-scale purchases of American energy and technology, India is signaling deeper economic integration with the United States at a time of heightened global uncertainty.
For Washington, the deal strengthens its efforts to isolate Russia economically while strengthening ties with key partners in the Indo-Pacific. For New Delhi, the sharp cut in tariffs offers relief to exporters and underscores the growing strategic importance of its relationship with the United States.