The Diplomatic Bridge: Sergio Gor’s Quiet Hand In US-India Trade Deal

Last Updated:February 02, 2026, 23:49 IST

The announcement of the deal by President Trump was preceded by a high-stakes phone call between him and Prime Minister Narendra Modi

A longtime Trump loyalist and former Director of the White House Presidential Personnel Office, Gor took charge as the US Ambassador to India on January 12, 2026. (File photo)

In a major diplomatic and economic breakthrough, US President Donald Trump announced on Monday that the United States and India have finalised a landmark trade agreement, marked by a significant reduction in reciprocal tariffs. The deal was preceded by a high-stakes phone call between President Trump and Prime Minister Narendra Modi, an interaction teased earlier in the day by the newly appointed US Ambassador to India, Sergio Gor.

The Gor Factor

The role of Sergio Gor in this breakthrough cannot be overstated. A longtime Trump loyalist and former Director of the White House Presidential Personnel Office, Gor took charge as the US Ambassador to India on January 12, 2026. His appointment was a clear signal from Washington that the White House intended to place a “human-in-the-loop" who possessed a direct line to the Oval Office.

Since his arrival in New Delhi, Gor has functioned as a strategic “bridge", consistently framing the trade negotiations not merely as a ledger of exports but as a reflection of the personal “friendship and respect" between the two leaders. Following the President’s announcement, Gor took to X to reiterate this sentiment: “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!"

The Tariff Truce

The core of the agreement centres on a de-escalation of the “tariff war" that had strained bilateral ties throughout 2025.

The Reduction: The United States has agreed to immediately lower its reciprocal tariff on Indian exports from 25 per cent to 18 per cent. This provides massive relief to Indian sectors such as textiles, engineering goods, and automobiles, which had been reeling under punitive duties.

The Reciprocity: In exchange, President Trump claimed that India has committed to moving towards zero tariffs and non-tariff barriers on US products, specifically targeting the dairy, agriculture, and high-tech sectors.

The $500 Billion Pivot and the Russia Factor

Beyond traditional trade, the deal includes a massive geopolitical shift. According to the White House, Prime Minister Modi has committed to a “Buy American" policy exceeding $500 billion. This includes future purchases of US energy (LNG and coal), technology, and agricultural products.

Significantly, the deal appears to have a “security-for-trade" component. President Trump stated that India has agreed to stop purchasing Russian oil—a major point of contention in Washington—and will instead increase imports from the US and potentially Venezuela. Trump suggested this pivot would “help end the war in Ukraine" by further isolating the Russian economy.

From Friction to Finality

This agreement marks a dramatic turnaround from late 2025, when the Trump administration had doubled tariffs on Indian goods to 50 per cent over New Delhi’s continued energy ties with Moscow. The swift resolution within the first month of 2026—and shortly after the presentation of India’s Union Budget—highlights a pragmatic shift.

By deploying Sergio Gor, a trusted aide who “gets things done," the US administration has replaced its earlier protectionist rhetoric with a “friendship-led" economic alliance that aims to redefine the global trade map for the next decade.

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