US Ambassador Sergio Gor says the final US tariffs on India will be 18%

The United States and India have announced a sharp rollback of reciprocal tariffs, a move that US Ambassador Sergio Gor hailed as the start of a “new era of India-US relations.” Under the deal, tariffs on Indian goods entering the US will be slashed from 50% to 18%, easing months of trade tensions between the two strategic partners. 

Calling the agreement leader-driven, Gor said the breakthrough was powered by the personal rapport between US President Donald Trump and Prime Minister Narendra Modi. “All the credit goes to President Trump and PM Modi. The two leaders have a great personal relationship, which has carried the deal forward,” he said, adding that the final tariff rate would settle at 18%. 

Speaking to India Today, Gor said, “Since arriving in India a month ago, I have repeatedly emphasized that the President considers Prime Minister Modi a true friend. And I mean that sincerely — this friendship is what allowed this deal to move forward so quickly and set our countries on an incredible path. I’ve often said that India and the United States have limitless potential, thanks to the leadership of President Trump and Prime Minister Modi. We are thrilled with this deal, and while there are many opportunities ahead for both nations, tonight is a landmark moment.”

Highlighting the deal’s importance Gor said, “This is a complex agreement. India is one of the largest and most important economies in the world, and negotiating with such a country is no small feat. To put it in perspective, it took almost 20 years to finalize trade terms with the European Union. On that scale, this achievement came remarkably quickly.”

Clarifying if the punitive tariffs imposed due to purchase of Russian oil have been removed and what will be the final tariff figure, Gor said, ” As the President mentioned, assuming global trends in Russian oil purchases continue, this number remains unchanged. The Prime Minister deeply cares about peace in Ukraine, and this measure was never targeted at India. It is part of a global effort to curb funding for the conflict and promote stability in the region. The final number will be 18, and whether that takes an hour or two days, you know, there’s technicalities that need to be worked out and paperwork that needs to be signed, but the number will be 18.”

“The Prime Minister’s leadership has been extraordinary, and the President truly regards him as a dear friend. He has even extended an invitation for the Prime Minister to visit India again. The President fondly recalls his previous visit and the strong relationship built over many years, a relationship that will continue to grow,” he added.

Regarding the Quad, Gor said it has never lost relevance. “Secretary Rubio, upon taking office, held a Quad meeting immediately, signaling renewed engagement. There are significant developments ahead,” he said.

A White House official told Reuters that the US was rescinding a punitive, 25% duty on all imports from India over its purchases of Russian oil that had stacked on top of a 25% “reciprocal” tariff rate.

Announcing the move on his Truth Social platform on February 2, President Trump said the US would immediately lower reciprocal tariffs on Indian goods from 25% to 18%, while India would move to eliminate tariffs and non-tariff barriers on American products. The announcement marked a sharp shift after months of escalating trade friction between the two countries. 

Prime Minister Modi echoed the upbeat tone, publicly thanking Trump for the decision. In a post on X, he said he was “delighted” that Made in India products would now face a reduced tariff and described Trump’s leadership as “vital for global peace, stability, and prosperity.” Modi stressed that cooperation between the world’s two largest democracies unlocks immense opportunities for mutual growth. 

If formalised, the tariff cuts could provide immediate relief to Indian exporters while opening wider access for US firms to one of the world’s fastest-growing major economies. Beyond trade, the agreement may also reshape energy ties, with a possible reorientation of India’s energy imports carrying implications for global oil markets and the geopolitical balance surrounding the Ukraine war. 

Ambassador Gor reinforced the optimism in a separate post on X, saying President Trump “genuinely considers Prime Minister Modi a great friend” and that the India-US relationship has “LIMITLESS POTENTIAL.”