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IndiaUS Ties Stall as Trade Deal Awaits Trump and Frictions Mount Over Russia, Pakistan

Upbeat embassy messaging masks a stalled trade pact, deepening mistrust.

Overview

  • Ambassador-designate Sergio Gor’s energetic outreach in New Delhi contrasts with a “wrapped” trade package still awaiting presidential approval, with US Commerce Secretary Howard Lutnick indicating Trump expects a supplicatory call from Prime Minister Narendra Modi.
  • Trade talks collapsed over the past year as Washington imposed higher duties on Indian goods, with India’s tariff burden reported to have doubled to 50 percent.
  • The White House pressed New Delhi to reduce purchases of Russian oil as leverage on Vladimir Putin for a Ukraine deal, despite India having increased US oil imports and recently trimming Russian buys.
  • US engagement with Pakistan rebounded quickly, including multiple White House meetings with army chief Asim Munir after Operation Sindoor, which New Delhi views as a fresh strain on the relationship.
  • Defence, counter-terrorism, and technology cooperation remain largely intact, while Indian analysts urge a strategic reset to build capacity and diversify partnerships as anti-India rhetoric in US politics fuels public distrust.