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US and India Continue Trade Deal Negotiations Amid Tariff Disputes

Story Highlights
  • US Ambassador Sergio Gor says discussions on a trade deal with India remain active
  • Next call on the deal scheduled for Tuesday; participants not disclosed
  • Gor emphasises strong US-India ties, calling friendship “real” despite disagreements

India and the United States continue to actively engage in trade deal negotiations, US Ambassador to India Sergio Gor said during his visit to Delhi.

Gor mentioned that the next discussion on the deal was scheduled for Tuesday, though he did not specify the participants.

He also emphasised the genuine friendship between US President Donald Trump and Indian Prime Minister Narendra Modi, noting that “real friends can disagree but will always resolve their differences in the end.”

His remarks follow claims by some US officials blaming India for delays in signing the trade deal, which Delhi has denied. Negotiations have been tense since Washington imposed 50% tariffs on Indian goods in August—the highest in Asia—including penalties tied to India’s purchase of Russian oil. The US has also sought greater access to India’s agricultural sector, a long-standing sticking point that Delhi has firmly resisted.

Sworn in at the White House in November, Gor has yet to formally present his credentials to India’s president. On Monday, he was officially welcomed as ambassador at an event in Delhi. The ceremony, described as a mini-inauguration, featured a carefully staged program with American music personally selected by Gor, including tracks from Lionel Richie, Village People, and Johnny Cash.

Speaking to reporters, Gor called India “no partner more essential” to the US and said the bilateral relationship could become the “most consequential” of the century. “India is the world’s largest democracy, so it’s not an easy task to get this across the finish line, but we are determined to get there,” he added, noting collaboration on security, counterterrorism, energy, technology, education, and health.

Relations between Trump and Modi, once considered warm, have cooled in recent months over trade disputes and India’s stance on mediation in its conflict with Pakistan, though the leaders continue to speak periodically by phone.

On Friday, India’s Foreign Ministry spokesperson Randhir Jaiswal said that both sides have been “close to a deal” several times and remain engaged in negotiations. His comments came after US Commerce Secretary Howard Lutnick suggested the trade pact stalled because Modi did not personally call Trump, a characterization Delhi rejected as “not accurate.”

Meanwhile, Trump has warned India about tariffs if it continues buying Russian oil. US Senator Lindsey Graham also said Trump had “greenlit” a proposed sanctions bill targeting Russia, which could result in even higher secondary tariffs on countries trading with Moscow.

India has been a major buyer of Russian oil since Western nations imposed sanctions following Russia’s 2022 invasion of Ukraine, citing energy needs for its large population. However, Indian refiners have reportedly cut their purchases from Moscow since the US tariffs were implemented.

Although India was one of the first countries the US sought a trade deal with, nearly a year later it remains among the last major economies yet to finalize an agreement with Washington.

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