Thursday, September 11, 2025

September 11, 2025

US-India Trade Deal Enters Final Lap as Trump's Ambassador Pick Foresees Resolution in "Weeks"

 


WASHINGTON D.C. – In a significant acceleration of diplomatic engagement, the United States and India are poised to enter a critical phase of trade negotiations, with both sides expressing newfound optimism about closing a "hopeful" trade deal within weeks. The breakthrough in tone follows former President Donald Trump's recent conciliatory remarks towards India and the nomination of his close ally, Sergio Gor, as the next US Ambassador to New Delhi.

The development was spearheaded by Gor himself during his Senate confirmation hearing, where he revealed that President Trump has extended an invitation to India's Commerce and Industry Minister, Piyush Goyal, to meet with US Trade Representative Jamieson Greer in Washington next week. This high-level meeting is seen as a decisive move to iron out the final sticking points in a long-pending bilateral trade agreement.

"The US is actively negotiating with India," Gor stated, exuding confidence. "We are not far apart... we are only negotiating the nitty-gritties of the deal. I do think it will get resolved over the next few weeks."

This optimistic timeline aligns with sources indicating that a sixth round of negotiations is imminent, with both nations hopeful of finalizing the first tranche of a limited trade agreement by the fall deadline of September-October.

Gor's nomination is a strategic move by the Trump administration. At 38, he is set to become the youngest-ever US ambassador to India, a role he pledges to use to aggressively advance the "America First" agenda. "If confirmed as ambassador, I will work to deliver on the presidential agenda and advance US interests by increasing our defence cooperation, ensuring fair and beneficial trade, deepening energy security and furthering technology," he told lawmakers.

The renewed push for a deal follows a notable shift in Trump's rhetoric. Earlier this month, he described Prime Minister Narendra Modi as a "friend" and indicated plans to speak with him soon—a marked contrast from his previous criticisms of Indian tariffs. PM Modi reciprocated on social media, calling the US a "valued ally."

However, the negotiations remain complex. Sources indicate that India is expected to firmly uphold its "red lines" to protect the interests of its farmers, MSMEs, dairy producers, and fishermen, particularly concerning market access for agricultural and dairy products.

The urgency for India is underscored by a recent tariff hike. Since August 27, Indian goods entering the US have been subjected to an additional 25% levy, bringing the cumulative tariff on India to 50%—the highest among all major US trading partners and on par with Brazil.

The upcoming meeting between Minister Goyal and USTR Greer, therefore, carries immense weight. Its outcome will determine whether the two democracies can swiftly translate their diplomatic warmth into a concrete economic agreement that balances America's demand for fair trade with India's need to protect its domestic stakeholders.