US Ambassador to India Sergio Gor on Monday described the India–United States relationship as having “limitless potential”, following President Donald Trump’s announcement of a new bilateral trade agreement that sharply lowers American tariffs on Indian goods and signals a major realignment in energy and technology cooperation.
Tariffs Slashed as Washington DC and New Delhi Seal Deal
President Trump announced that US tariffs on Indian products would be reduced from 50 per cent to 18 per cent, calling it a significant 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 that India had agreed to stop purchasing Russian oil and would instead buy $500 billion worth of American energy and technology products as part of the broader agreement.
In New Delhi, Prime Minister Narendra Modi welcomed the development, thanking President Trump and saying he was “delighted” by the reduction in tariffs on ‘Made in India’ goods.
‘Limitless Potential’: Ambassador Gor Reacts
Responding to the announcement, Sergio Gor took to social media platform
“As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend! Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL!” Gor said in a post on social media platform
Personal Chemistry Drove the Agreement, Says Gor
Speaking to CNN News 18, the US ambassador credited the deal to the close working relationship between President Trump and Prime Minister Modi, which he said had helped push negotiations forward.
“All credit goes to President Trump and PM Modi. Since I arrived in India about a month ago, I have said that the two leaders have a great personal relationship and that is something that carried this deal forward,” Gor told CNN News 18.
He also emphasized the scale of the tariff reduction, calling it a major win for India.
“I am thrilled that India is getting this 18 per cent (tariffs), which is a massive drop from the previous number. And so as I have said since I arrived the best is yet to come,” Gor said.
Clarity on Additional Tariffs and Russian Oil
Addressing questions over whether the additional 25 per cent tariffs on India had been scrapped, Gor confirmed that they would no longer apply under the new arrangement.
“That is correct. As you saw in the Truth of the President wrote, part of the agreement is that all nations around the world stop buying oil from Russia in order to bring peace. I know the Prime Minister deeply cares about bringing peace in that conflict, as does President Trump. So the number as it gets finalized will be 18 per cent.”
Strategic and Economic Implications
The agreement marks a significant shift in US–India trade relations, with implications extending beyond tariffs to global energy markets and geopolitical alignments. By committing to large-scale purchases of American energy and technology, India signals deeper economic integration with the United States at a time of heightened global uncertainty.
For Washington, the deal reinforces its effort to isolate Russia economically while strengthening ties with key partners in the Indo-Pacific. For New Delhi, the sharp tariff cut offers relief to exporters and underscores the growing strategic importance of its relationship with the United States.
