The trade agreement between India and the U.S. has finally been settled. For nearly 10 months, there was continued tension over tariffs, which had occasionally strained relations between the two nations. However, dialogue continued, with President Donald Trump frequently referring to Prime Minister Narendra Modi as a dear friend, a sentiment reciprocated by Modi.
The situation escalated when the U.S. initially imposed a 25% tariff on India in April, followed by an additional 25% penalty for purchasing Russian oil, resulting in a total tariff of 50% on India. Nevertheless, in a move showcasing true friendship, Trump has now reduced tariffs to 18% for India.
The Key Architect Behind the Deal
Continuous meetings were being held between the two nations over tariffs. However, since Sergio Gor assumed the position of U.S. Ambassador to India, clarity began to emerge around the trade deal. He took office as the United States Ambassador to India on January 12, 2026.
Upon assuming office, he proclaimed that all is well between India and the U.S., and that discussions are heading in a positive direction. He forecasted that beneficial outcomes were imminent, depicting the relationship between the two countries as extremely cordial, valuing each other greatly.
Before this, Gor served as the Director of the White House Presidential Personnel Office and was considered a trusted advisor to President Trump. Trump entrusted him with leadership over India amid rising tensions related to tariffs and trade issues.
Shortly after being appointed as an ambassador, Gor stated that negotiations on the trade deal were ongoing and urged both nations to work together to finalize it. As early as the day after his appointment, on January 13, 2026, signals of trade talks between Indian and American officials were conveyed. He reported that around seven rounds of meetings had occurred, all progressing positively.
Improved Relations Between the Two Nations: Sergio Gor
On the 21st day of Sergio Gor's appointment, the trade deal between India and the U.S. was announced. Reports suggest that the ambassador played a significant role, being highly trusted by Donald Trump, who had entrusted him with this responsibility.
In his first major public address, Gor emphasized that no partner is as significant as India, and the India-U.S. relationship is the most vital global partnership of the century. He advocated for collaborative efforts in other areas such as security, technology, energy, and education, beyond just business operations.
Gor's Statement on the Trade Deal
Following the deal's announcement, Gor commented on the endless possibilities within India-U.S. relations, marking the agreement as a landmark moment for both nations. He further mentioned that President Trump sincerely considers Prime Minister Modi a true friend, with personal trust significantly accelerating trade negotiations.
Gor remarked that the tariff on Indian goods has been reduced from the previous 50% to 18%, facilitating cooperation between the two nations and easing business tensions.
