Amid concerns over stalled trade talks, the United States said negotiations with India remain ongoing, despite the postponement of a scheduled American trade delegation visit on August 25.
“We value our ongoing engagement with the Government of India on trade and investment matters. We look forward to continuing to advance a trade agreement that leads to a productive and balanced trade relationship between our two countries,” the official told CNN-NEWS18.
Additional tariff on India for buying Russian oil
The statement offers reassurance after weeks of friction following Trump’s announcement of a 25 per cent tariff on Indian goods earlier this month. US President Donald Trump has also threatened additional secondary tariffs from 27 August, citing India’s continued imports of Russian oil.
Despite the tensions, officials on both sides appear optimistic about the prospect of a trade deal later this year. The US maintains that its push for tariff changes is part of Trump’s wider agenda to “correct longstanding imbalances in international trade and bring back fairness to our trade relationships.”
India, however, has drawn red lines on several issues, most notably in agriculture and fisheries. New Delhi has emphasised that it will not compromise the interests of its farmers and fishermen, even as it seeks a broader agreement that could restore stability to the trade relationship.
Alongside questions on trade, US refused to be drawn into Prime Minister Narendra Modi’s candid remarks to President Donald Trump over a phone conversation in June, in which Modi reportedly told Trump that Washington had played no role in mediating between India and Pakistan during Operation Sindoor.
What happened in 35-minute call between Modi and Trump?
The 35-minute call, held while Modi was in Canada for the G7 Summit, has become a point of debate after reports surfaced that Modi had firmly dismissed any notion of US involvement in resolving tensions with Pakistan. Asked directly if Trump had been untruthful in claiming Washington had brokered peace, a spokesperson for the US State Department told CNN-NEWS18, “We do not comment on private diplomatic conversations.”
However, the spokesperson did stress that the US was “proud of the US brokered ceasefire reached between India and Pakistan” and went on to commend both Modi and Pakistan’s then Prime Minister Nawaz Sharif “for choosing the path of peace.”
India has long maintained that dialogue with Pakistan cannot resume unless Islamabad takes concrete steps against terrorism. Modi himself has consistently rejected any external mediation in what New Delhi views as a strictly bilateral matter. The US, on the other hand, has sought to highlight its role in facilitating the ceasefire after months of cross-border tensions.
The State Department added, “As President Trump has said, both leaders showed strength, wisdom and fortitude.”
It further urged India and Pakistan to engage in direct communication to prevent future conflict, saying that maintaining the ceasefire was “critical to preserving regional stability.”
On trade, meanwhile, both US and India are engaged in a careful balancing act with the US pushing for market access and tariff correction, India insisting on the protection of vulnerable sectors, yet both aware of the strategic importance of avoiding a breakdown in ties.