US and India Approach Finalisation of Fair Trade Deal Amid Tariff Negotiations

The United States is nearing a "fair trade deal" with India, according to President Donald Trump. He mentioned plans to eventually reduce tariffs on New Delhi. "We're making a deal with India, much different deal than we had in the past. So right now, they don't love me, but they'll love us again," Trump stated during a ceremony in the Oval Office.

Relations between the US and India have been tense since Trump imposed 50% tariffs on Indian goods, including 25% on Russian oil imports. India criticised these measures as "unfair, unjustified and unreasonable," asserting that its energy policy prioritises national interests. Despite this, both nations are working towards a resolution.

Five rounds of discussions have been completed for the initial phase of the US-India trade agreement. An official in New Delhi recently indicated that both countries are "very near" to finalising the agreement, with most issues being resolved. The focus is now on refining the language of the deal.

During the Oval Office event, Trump addressed Treasury Secretary Scott Bessent about the progress. "But we're getting close. Scott, I think we're pretty close to doing a deal that's good for everybody," Trump said. Bessent agreed with Trump's assessment of the situation.

Trump was questioned about his willingness to lower tariffs on India. He explained that current high tariffs are linked to India's reduced Russian oil imports. "Well, right now the tariffs are very high on India because of the Russian oil, and they've stopped doing the Russian oil. It's been reduced very substantially," Trump noted.

The President assured that tariff reductions would occur eventually. "At some point, no, at some point, we're going to be bringing them down," he said. He emphasised that tariffs have been crucial for US economic stability over the years.

Diplomatic Engagements and Future Prospects

The remarks were made during Sergio Gor's swearing-in as America's Ambassador to India by Vice President J D Vance. Trump highlighted India's strong negotiation skills and urged Gor to consider this in future dealings. "They're very good negotiators, Sergio, so you have to take a look at that, if you would please," Trump advised.

Reflecting on past administrations, Trump remarked on former President Joe Biden's lack of engagement with India. "In the old days, do you think (former US President Joe) Biden would ask that question? I don't think so," he commented.

The ongoing discussions signal a positive shift in US-India relations as both countries aim for a mutually beneficial trade agreement. With significant progress made, there is optimism for a fair resolution soon.