President Donald Trump has hinted that tariffs on India may be reduced soon

President Donald Trump has hinted that tariffs on India may be reduced soon, as longtime loyalist Sergio Gor is sworn in to take up the office of ambassador in New Delhi. Trump said Gor’s top priority would be to promote investment in key U.S. industries and increase U.S. energy exports.

President Trump said during Gor’s swearing-in ceremony on Monday that tariffs on India are high because they have been buying oil from Russia. He, however, added that the tariffs will be reduced soon since India has substantially decreased its imports of Russian crude oil.

However, market research firm Kpler found that India’s imports of Russian oil remained almost the same at 1.59 million barrels per day (mbd) in October and September. The tank tracker added that 1.73 million barrels per day (mbd) of October Russian oil exports are heading to India so far. Another 302,000 barrels per day (b/d) did not have a destination, but a portion of it could also be shipped to India. However, Kpler says it is still too early to get a clear picture for November.

Trump hopes Gor will strengthen U.S.-India ties

Trump said he is looking at Gor to strengthen the strategic partnership between the U.S. and India. He added that one of the U.S. ambassador’s top priorities would also be to expand security cooperation. 

The Senate confirmed Gor’s nomination as U.S. ambassador to India on October 7, and he arrived in New Delhi several days later. Gor met with Prime Minister Narendra Modi to discuss trade, defense, technology, and mineral resources. 

Alexandra Hermann of Oxford Economics believes a political ambassador (Gor) rather than a traditional diplomat is needed to speed things up. However, she noted that it also raises the risk that they could be less protected if the countries cut ties or if opinion in either country sours. 

Herman believes Gor represents the White House’s strategy to establish a fast and more direct link to New Delhi. Having Trump’s close ally in office helps bypass the usual diplomatic bureaucracy. She added that this suggests the administration’s desire to reach a trade deal with India sooner rather than later.

Rajan claims the U.S.-India relationship is not easy to fix

Former Reserve Bank of India Governor Raghuram Rajan recently stated that the deteriorating ties between Washington and New Delhi in recent months may not be easily resolved. Steep tariffs, Trump’s constant meddling, and repeated claims of brokering a truce, along with a $100,000 fee for an H-1B visa, are among the issues straining ties between the two countries.

Rajan, now a professor of finance at the University of Chicago Booth, warned that the last time Richard Nixon and Henry Kissinger threw the U.S. support behind Pakistan during the 1971 India-Pakistan war, India got cozier with Russia for the next 25 years.

“It can’t be that you are the most tariffed country in the world, more than even China, and then talk about military friendship and joint maneuvers.” 

–Raghuram Rajan, Professor of Finance at the University of Chicago Booth

The Federation of Indian Export Organizations (FIEO), a body under India’s Ministry of Commerce & Industry, stated in a press release on Monday that India’s outreach to Russia has continued. A delegation of 20 Indian companies participated in the annual Moscow International Tool Expo this week. 

FIEO President SC Ralhan stated that India’s engineering exports to Russia are growing rapidly and are expected to reach $1.75 billion by the end of 2025. He added that participating in the exhibition will deepen commercial ties and help boost bilateral trade between India and Russia. India imported $63.83 billion from Russia and exported $4.88 billion in fiscal 2025.

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