The United States is pressing ahead with efforts to deepen trade and strategic cooperation with India, even as tensions linger over New Delhi’s continued purchases of Russian oil, according to the newly appointed U.S. ambassador to India.
Speaking in New Delhi on his first day at the U.S. Embassy, Ambassador-designate Sergio Gor said Washington and New Delhi remain actively engaged in negotiations toward a bilateral trade agreement aimed at strengthening economic ties between the two democracies. He emphasized that differences over energy policy, while significant, should not derail the broader partnership.
“Strong partners can disagree and still find a way forward,” Gor said, noting that talks on trade-related issues are scheduled to continue this week.
Trade Talks Continue Amid Tariff Pressure
India has sharply increased imports of discounted Russian crude since Moscow launched its invasion of Ukraine in 2022, becoming Russia’s second-largest oil customer after China. The move has drawn criticism from the Trump administration, which argues that such purchases indirectly support Russia’s war effort.
In response, President Donald Trump signed an executive order last August imposing an additional 25% tariff on Indian goods, pushing total U.S. tariffs on India-linked trade to 50%. The measures have complicated negotiations on a long-discussed bilateral trade deal.
Despite the strain, both sides have continued talks that began early last year. Officials initially aimed to finalize the first phase of the agreement by late 2025, but progress has slowed. Key sticking points include India’s energy sourcing choices and domestic political pressure to protect small farmers and local industries.
Strategic Cooperation Beyond Trade
Gor, who also serves as the U.S. special envoy to South and Central Asia, underscored that trade is only one pillar of the relationship. He said the two countries will continue close cooperation in areas such as regional security, counterterrorism, energy transition, advanced technology, education, and public health.
As part of that broader agenda, Gor announced that India will be formally invited next month to join “Pax Silica,” a U.S.-led strategic initiative focused on building secure and resilient supply chains for silicon-based technologies. The initiative spans critical minerals, energy inputs, semiconductor manufacturing, and artificial intelligence.
Japan, South Korea, the United Kingdom, and Israel joined the framework last month, reflecting Washington’s push to reduce reliance on rival supply chains in sensitive technology sectors.
India Diversifies Trade Options
Facing mounting U.S. tariffs, India has accelerated efforts to diversify its trade partnerships. In recent months, New Delhi finalized a free trade agreement with Oman and concluded negotiations with New Zealand, part of a broader strategy to expand export markets and cushion the impact of global trade disputes.
Analysts say Washington’s renewed diplomatic outreach signals recognition of India’s growing economic and geopolitical importance, even as disagreements over Russia continue to test the relationship.
Whether the two sides can bridge their differences and revive momentum toward a comprehensive trade deal remains uncertain, but officials on both ends insist dialogue remains firmly on track.
