Given US President Donald Trump’s eccentric attitude, it’s difficult to make any predictions. He has been making anti-India statements for the past few days, but the US’s stance over the past two days suggests diplomatic contact between Delhi and Washington has been re-established. Trade talks between the two countries are showing activity. Sergio Gor, the former US ambassador to India, had taken a positive stance, stating that the friendship between President Donald Trump and Prime Minister Narendra Modi is very strong and that their relationship remains firmly established at the highest political levels.
In true friendship, sometimes differences arise but they both resolve them well together. He also made a surprising statement that President Trump may visit India soon. There is no more important partner for America than India. Now the good news is that External Affairs Minister S. Jaishankar and US Secretary of State and National Security Advisor Marco Rubio had a telephonic conversation. Both discussed bilateral trade talks, rare earth minerals, defense, nuclear cooperation, energy and a possible meeting to be held next month. It is expected that considerable progress has been made in the trade talks between the two countries but the importance of other issues cannot be underestimated.
Marco Rubio recently praised India for passing the Atomic Energy Exploitation and Development Bill, saying it will help expand opportunities for American companies and advance shared energy goals. In his statement, US Ambassador Sergio Gor described the US’s invitation to India as a significant initiative for the Pax Silica strategic initiative. Pax Silica is an initiative launched to counter China and aims to build a secure, prosperous, and innovation-driven silicon supply chain, from critical minerals and energy sources to advanced manufacturing, all conductors, AI development, and logistics.
Japan, South Korea, Britain, and Israel have already joined the initiative. India will be admitted to the group as a full member. External Affairs Ministers S. Jaishankar and Marco Rubio have met in the past year as well. India has reduced oil imports from Russia from September 2025, signaling to Washington that the US should remove the 25 percent punitive tariff. Sources said the waiver of the 25 percent tariff penalty is a move that could ease tensions in relations between the two sides, while both sides continue negotiations on a trade deal to achieve the remaining 25 percent lower tariff.
The sense of urgency in this matter also comes at a time when India and the European Union are negotiating their own trade agreement and trying to finalize it before the EU leaders’ visit to India as chief guests for the Republic Day parade and celebrations on January 26th, and the subsequent India-EU leaders’ summit. The crucial question is why the US has changed its stance. Trump has already issued a decree imposing a 500 percent tariff on countries buying oil from Russia. The truth is that the US needs India very much today. It is not that only India needs a trade deal with the US.
Both countries have set lofty goals for bilateral trade. India and the United States have set a target of reaching $500 billion by 2030. To narrow the trade gap, India has promised the United States that it will increase purchases of energy and defense equipment. India made this promise even though trade talks between the two countries last year have remained inconclusive. India is continuously taking measures to mitigate the impact of Trump’s tariffs. German Chancellor Friedrich Merz visited India. After meeting Prime Minister Modi, the two countries signed important agreements, including defense and semiconductor agreements. The two leaders also discussed geopolitical turmoil, especially Trump’s arbitrary behavior.
India and Germany have prepared a roadmap to increase bilateral trade. Despite US pressure, Germany remains India’s largest trading partner in Europe. India has prioritized trade with the Gulf countries and several other nations. India has been successful in conveying to Washington that US actions could harm bilateral relations and thus America will lose a good friend in India. From war to oil, Trump makes new claims every day. Trump’s statements are different and unusual from traditional diplomatic language.
NATO and European countries have also become troubled by Trump’s decrees, and Trump is losing credibility. No matter the pressure, why would anyone tolerate Trump’s authoritarianism? Trump is also making absurd statements to hide his failures. Despite all the complexities, if India and the US reach an agreement on a comprehensive trade deal, it would be beneficial for both countries.
