Trump Hints at Cutting Tariffs on India as Sergio Gor Takes Office as U.S. Ambassador

Washington — U.S. President Donald Trump signaled a possible reduction in tariffs on Indian goods as his longtime ally Sergio Gor was sworn in as the new U.S. Ambassador to India, marking a potential thaw in recent trade tensions between the two nations.

During the ceremony at the White House, Trump said the tariffs on India could be reduced soon, citing a decline in India’s Russian oil imports. “The tariffs on India are really high because of the Russian oil imports, but they have now substantially reduced them, so we will be bringing the tariffs down,” Trump said.

However, trade data from research firm Kpler suggested that India’s Russian crude imports were largely unchanged in October, averaging 1.59 million barrels per day, almost flat from September. Analysts noted that while Trump’s remarks hint at renewed engagement, they may not reflect the immediate reality of oil trade flows.

Trump also outlined Gor’s diplomatic priorities, emphasizing trade, defense, and energy cooperation. “I am looking at Sergio to strengthen one of our most important relationships, and that is the strategic partnership with the Republic of India,” he said. Gor, who previously served as Assistant to the President and Director of Presidential Personnel, has also been appointed Special Envoy to South and Central Asia.

Following his confirmation by the Senate on October 7, Gor arrived in New Delhi and met with Prime Minister Narendra Modi to discuss defense collaboration, critical minerals, and technology partnerships. “We also discussed the importance of critical minerals to both of our nations,” Gor said in a statement released by the U.S. Embassy.

Observers see Gor’s appointment as a sign of Trump’s preference for political loyalists over career diplomats. Alexandra Hermann, an analyst at Oxford Economics, said the move “suggests a desire to reach a trade deal sooner rather than later.” However, she cautioned that such a personal approach may increase volatility in bilateral ties if public sentiment shifts.

Recent months have seen rising friction between Washington and New Delhi over tariffs, H1B visa fees, and India’s energy imports from Russia. Former Reserve Bank of India Governor Raghuram Rajan warned that excessive tariffs could undermine strategic cooperation. “It can’t be that you are the most tariffed country in the world, more than even China, and then talk about military friendship,” he said at an event in Chicago last week.

Trade analysts also pointed out India’s expanding outreach to Moscow and Beijing amid its strained ties with Washington. A recent meeting between Modi, Vladimir Putin, and Xi Jinping during the Shanghai Cooperation Organization Summit drew attention for its symbolic significance.

Despite India’s increasing engagement with Russia, the U.S. remains its most significant trade partner. According to the Indian Brand Equity Foundation, India’s exports to Russia stood at $4.88 billion in fiscal 2025, compared with $63.84 billion in imports. In contrast, the U.S. accounted for 18% of India’s total exports, far exceeding Russia’s share of just 1%.

As Gor begins his tenure in New Delhi, both nations appear eager to restore momentum to their economic and strategic ties. While Trump’s comments hint at optimism, the coming months will determine whether political diplomacy can translate into tangible trade relief and a stronger bilateral partnership.