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US, India continue trade negotiations amid strained ties
Newly appointed US Ambassador to India Sergio Gor confirmed ongoing discussions between the two nations, with a scheduled call set for Tuesday, though details on participants remain undisclosed.
Diplomatic optimism despite recent friction
Gor, who took office in November but has yet to present his credentials to Indian President Droupadi Murmu, emphasized the strength of the US-India relationship during a formal welcome event in Delhi on Monday. The ceremony, marked by American music selections including Lionel Richie and Johnny Cash, underscored diplomatic efforts to smooth over recent tensions.
"Real friends can disagree but will always resolve their differences," Gor stated, referencing the personal rapport between US President Donald Trump and Indian Prime Minister Narendra Modi. Despite cooling relations over trade and geopolitical issues, he described India as having "no partner more essential" than the US, calling the bilateral relationship potentially the "most consequential" of the century.
Sticking points and stalled progress
Trade negotiations have faced hurdles since August, when the US imposed 50% tariffs on Indian goods-the highest in Asia-partly in response to India's continued purchase of Russian oil. Washington has pressed for greater access to India's agricultural sector, a demand Delhi has firmly resisted.
India's Foreign Ministry spokesperson Randhir Jaiswal acknowledged on Friday that both sides had been "close to a deal" on multiple occasions but stressed that discussions remain active. His remarks followed claims by US Commerce Secretary Howard Lutnick, who alleged in a podcast that the deal stalled because Modi failed to call Trump-a characterization Delhi dismissed as "not accurate."
Geopolitical pressures and energy disputes
Trump has publicly warned India about increasing tariffs if Delhi does not reduce its Russian oil imports. Meanwhile, US Senator Lindsey Graham revealed last week that Trump had endorsed a proposed sanctions bill targeting countries doing business with Moscow, which could impose further penalties on India.
India, which became a top buyer of Russian oil after Western sanctions following the 2022 Ukraine invasion, has defended its energy policies as necessary for its population. However, reports indicate Indian refiners have begun scaling back purchases from Russia since the US tariffs took effect.
Uncertain path forward
Despite early momentum, India is now among the last major economies without a trade pact with the US. Gor acknowledged the challenges, noting that negotiations with the world's most populous nation are inherently complex but expressed confidence in reaching an agreement.
"We are determined to get there," he said, highlighting collaboration in security, counterterrorism, energy, technology, education, and health as key areas of alignment.
