Sergio Gor hails US–India trade pact, says ties have ‘limitless potential’

India-US trade deal: US Ambassador Sergio Gor says India–US ties have “limitless potential” after President Donald Trump announces a trade deal that cuts tariffs on Indian goods to 18% and ends additional levies.

Written By Sayantani Biswas
Updated3 Feb 2026, 06:04 AM IST
In this image posted on Jan. 29, 2026, External Affairs Minister S Jaishankar meets US Ambassador to India Sergio Gor, in New Delhi.
In this image posted on Jan. 29, 2026, External Affairs Minister S Jaishankar meets US Ambassador to India Sergio Gor, in New Delhi.(@DrSJaishankar)

India-US trade deal: 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 and New Delhi Seal Deal

Trump announced that US tariffs on Indian products would be reduced from 50% to 18%, 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.

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Trump 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 Trump and saying he was “delighted” by the reduction in tariffs on ‘Made in India’ goods.

‘Limitless Potential’: Ambassador Sergio Gor Reacts

Responding to the announcement, Gor took to X to underline the personal rapport between the two leaders and the strategic promise of the partnership.

Also Read | Trump announces trade deal with India LIVE: Trump cuts tariffs to 18%

“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 wrote in the post.

Personal Chemistry Drove the Agreement, Says Gor

Speaking to CNN News 18, the US ambassador credited the deal to the close working relationship between Trump and 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 emphasised the scale of the tariff reduction, calling it a major win for India.

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“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 US had scrapped the additional 25% tariffs on India, Gor confirmed that they would no longer apply under the new arrangement.

Also Read | Trump speaks to PM Modi, says US ambassador to India Sergio Gor

“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 finalised 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 US amid heightened global uncertainty.

Also Read | Trump announces trade deal with India LIVE: Trump cuts tariffs to 18%

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.

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