Newly appointed US ambassador to India advocates for stronger trade relations, even as disagreements persist regarding Russian oil

U.S. and India Work to Strengthen Economic and Strategic Ties

The United States and India are in active discussions regarding a new bilateral trade deal, aiming to deepen both economic and strategic cooperation, according to the incoming U.S. ambassador to India.

Since Russia launched its full-scale invasion of Ukraine in February 2022, India has become the second largest importer of Russian oil, trailing only China. This move has drawn criticism from the Trump administration, which argued that such purchases help sustain Russia’s military efforts.

In August, President Donald Trump issued an executive order imposing an additional 25% tariff on Indian imports due to its continued purchases of Russian crude. This brought the total U.S. tariffs on India to 50%.

Sergio Gor, a close Trump ally and the newly appointed ambassador, announced that the next round of trade talks between the two nations is set for Tuesday.

“True partners may have disagreements, but they always find a way to resolve them,” Gor remarked during his inaugural speech at the U.S. Embassy. “India is the world’s most populous country, so reaching an agreement is challenging, but we are committed to making it happen.”

Gor, who also serves as the U.S. special envoy to South and Central Asia, revealed that India will soon receive a formal invitation to join Pax Silica, a U.S.-led strategic initiative, as part of expanding cooperation.

This initiative seeks to establish a reliable silicon supply chain, covering everything from essential minerals and energy resources to advanced manufacturing, semiconductors, and artificial intelligence. Countries such as Japan, South Korea, the United Kingdom, and Israel joined the effort last month.

Gor’s emphasis on enhancing trade and economic relations comes as the U.S. increases pressure on India to halt its purchases of discounted Russian oil, which has strained the partnership in recent months.

Negotiations for a bilateral trade agreement between India and the U.S. have been ongoing since early last year. While both sides aimed to finalize the first phase by autumn 2025, progress has stalled due to disagreements over Russian oil imports and concerns from Indian negotiators about protecting small farmers and local industries.

Gor highlighted that, while trade is a key element, the two countries will also continue close collaboration in areas such as security, counterterrorism, energy, technology, education, and healthcare.

In response to the high U.S. tariffs, India has recently accelerated efforts to secure new free trade agreements. Last month, India signed a deal with Oman and wrapped up negotiations with New Zealand.