Two United States delegations have arrived in New Delhi this week with the objective of restarting damaged ties with India. Both sides acknowledge that a comprehensive trade deal is not yet ready, but the primary goal is to maintain ongoing discussions and address recent tensions. No official announcements are anticipated in the immediate future.
Diplomatic Engagements and Trade Talks
The first delegation is led by Allison Hooker, the US Under Secretary of State for Political Affairs. Her visit, scheduled from December 7 to 11, includes meetings with India’s Foreign Secretary Vikram Misri and other senior officials. Following Ms. Hooker's departure, a second team will take over. This group is headed by Rick Switzer, the Deputy US Trade Representative, accompanied by Brendan Lynch, the chief trade negotiator. Their meetings are scheduled from December 9 to 11.
Sources familiar with the negotiations indicate that while no trade deal is expected at this juncture, both nations are committed to keeping communication channels open. This diplomatic push aims to repair the relationship following months of strained relations.
Background of Trade Tensions
Pressure from the Trump administration had been significant since August, when President Donald Trump imposed a substantial 50% tariff on Indian goods. This action was followed by sanctions on two major Russian oil producers, which compelled Indian refiners to seek alternative supply routes. This move had a cascading effect, impacting both energy markets and trade flows.
In November, President Trump softened his stance, suggesting that tariffs would eventually be lowered, though no specific timeline was provided. The US initiative occurred shortly after Russian President Vladimir Putin's high-profile visit to India, which focused on expanding economic cooperation and highlighted the long-standing relationship between Mr. Putin and Prime Minister Narendra Modi, even amidst ongoing pressure from Washington.
The timing of the US delegations' visits and the Moscow summit placed India in a delicate geopolitical position between two rival global powers. Trade officials have indicated that Mr. Switzer and Mr. Lynch intend to advance discussions on a broad trade agreement.
India's Commerce Secretary had previously expressed optimism that the initial phase of the trade talks, specifically concerning tariff rates, could be concluded by the end of the year. The Indian Ministries of Commerce and External Affairs did not immediately respond to requests for comment.
Continued Cooperation in Defense and Security
Despite the existing trade friction, both countries maintain robust cooperation in defense and security matters. Officials in New Delhi confirmed that the US and India participated in their annual military exercises in Alaska in September. In August, security issues were a key topic during the US-India 2+2 Intersessional Dialogue. Furthermore, a joint counter-terrorism working group convened just last week, demonstrating continued engagement even as trade tensions persisted.
Analysts observing the bilateral relationship suggest that both governments are actively working to stabilize ties after a period of strain. C. Raja Mohan, a visiting professor at the Institute of South Asian Studies at the National University of Singapore, commented that "Both sides are trying to move beyond where the relationship was, and after tariffs were imposed, there have been sustained high-level negotiations between the two." He further noted that these engagements signify the nations' efforts to overcome current challenges.
Relations with Washington had also experienced a cooling period after President Trump claimed to have helped broker a ceasefire between India and Pakistan during a conflict in May, using trade pressure as leverage. New Delhi had consistently refuted this claim.
Deepening Ties with Moscow
While ongoing trade talks with the US are underway, officials continue to state that a clear outcome for a trade deal remains uncertain. Concurrently, Prime Minister Modi is deepening India's ties with Moscow. He announced that India and Russia are pursuing a Free Trade Agreement with the Eurasian Economic Union. Additionally, he introduced a free 30-day e-tourist visa and a 30-day group tourist visa for Russian citizens. Prime Minister Modi also mentioned that Russia has agreed to adopt the framework for joining the International Big Cat Alliance.
Following the 23rd India-Russia Annual Summit, both leaders reaffirmed their commitment to joint efforts against terrorism, extremism, organized crime, money laundering, terrorist financing, and drug trafficking. Presidents Modi and Putin also jointly condemned the recent attacks in Pahalgam, Jammu and Kashmir, and at Crocus City Hall in Russia.