NEW DELHI — The United States and India are intensifying efforts to finalize a comprehensive bilateral trade agreement despite ongoing tensions over New Delhi’s continued purchases of Russian crude oil. Sergio Gor, the newly appointed U.S. ambassador-designate to India, confirmed ongoing high-level discussions aimed at strengthening economic and strategic partnerships between the two nations.
Addressing the diplomatic friction stemming from India’s energy imports, Gor acknowledged disagreements while emphasizing the countries’ shared commitment to resolution. “Real friends can disagree, but always resolve their differences in the end,” stated Gor during his inaugural address at the U.S. Embassy. He recognized the complexity of negotiating with the world’s largest democracy but expressed determination to reach mutually beneficial agreements.
The trade relationship faces significant challenges following former President Donald Trump’s executive order imposing additional 25% tariffs on Indian imports, bringing total U.S. tariffs to 50%. These measures specifically target India’s acquisition of Russian petroleum, which the previous administration argued indirectly supported Moscow’s military operations in Ukraine.
In a significant strategic development, Gor simultaneously announced India’s formal invitation to join Pax Silica—a U.S.-led initiative designed to establish secure silicon supply chains encompassing critical minerals, advanced manufacturing, semiconductors, and artificial intelligence. The coalition already includes Japan, South Korea, the United Kingdom, and Israel.
Despite obstacles in trade negotiations, particularly regarding energy sourcing and protection of India’s agricultural and industrial sectors, both countries continue collaborating across multiple domains including security, counterterrorism, energy technology, education, and healthcare. Meanwhile, India has accelerated its pursuit of alternative trade agreements, recently finalizing pacts with Oman and New Zealand.