US Signals Momentum in Trade Talks with India Amid Easing Tensions

Fremont, CA: The United States has signalled renewed momentum in its long-standing trade negotiations with India, with a senior administration official citing “a lot of positive developments” in recent discussions. The comments mark a notable shift after months of friction, much of it linked to Washington’s concerns over India’s continued imports of Russian oil. In recent weeks, easing tensions on that front has opened the door to more constructive diplomatic engagement.

Briefing reporters, the official stated that the United States is pursuing two parallel priorities with New Delhi: a reciprocal trade agreement and ongoing concerns regarding India’s purchases of Russian oil. The official noted that recent engagement has produced several positive developments, including progress in reciprocal trade negotiations and signs of improvement in the Russian oil market. While expressing cautious optimism, the official emphasized that substantial work remains and indicated that negotiators aim to advance discussions before the end of the year.

Progress on Trade Architecture and Market Access Issues

At the centre of the current discussions is a proposed reciprocal trade agreement aimed at resolving persistent disputes on tariffs and market access. Washington has long raised concerns over India’s duties on agricultural and industrial goods. At the same time, New Delhi continues to press for the reinstatement of its preferential trade benefits under the U.S. Generalized System of Preferences (GSP). India is also seeking broader access for its technology and services professionals—an issue that has featured prominently in bilateral trade discourse.

The latest remarks came amid the White House's announcement of preliminary trade agreements with Argentina, El Salvador, Ecuador, and Guatemala. These agreements, which offer tariff reductions on goods not manufactured in the United States, reflect a broader U.S. strategy emphasizing targeted, bilateral partnerships over expansive multilateral frameworks. The senior official further highlighted constructive engagements with Vietnam, Indonesia, and Switzerland, underscoring Washington’s growing preference for focused bilateral deals.

Diplomatic Shifts and Potential Tariff Reductions

Adding to the positive momentum, Sergio Gor has commenced his tenure as U.S. ambassador to India. During Gor’s swearing-in ceremony, President Donald Trump suggested the possibility of tariff reductions on Indian imports—a signal interpreted by analysts as an indication of the administration’s intent to accelerate progress on the reciprocal trade deal.

Such an agreement could resolve several entrenched issues, including tariff disputes, intellectual property concerns, and market access challenges. For India, the restoration of preferential trade status and the expansion of opportunities for its services sector remain key interests.

As of publication, India’s Ministry of Commerce and the Ministry of External Affairs had not commented on Washington’s latest statements. Bilateral trade between the two countries reached approximately USD 190 billion in the previous years, with both sides expressing commitment to significantly expanding economic engagement in the coming years.