US, India renew trade talks as Rubio, Jaishankar discuss tariffs and deal

US Secretary of State Marco Rubio held talks with India’s External Affairs Minister Subrahmanyam Jaishankar on Tuesday, underscoring renewed diplomatic engagement as uncertainty continues over when the two countries will finalize a long-pending trade agreement aimed at easing Washington’s punitive tariffs on New Delhi.

According to a statement from the US Department of State, the two officials discussed ongoing bilateral trade negotiations, alongside cooperation on critical minerals and energy security.

The conversation comes amid heightened trade friction between Washington and New Delhi during President Donald Trump’s second term, with India facing some of the steepest US tariffs globally.

Trade talks resume amid high tariffs

The call focused on efforts to advance stalled trade discussions at a time when the US has imposed tariffs of 50% on Indian goods, partly in response to India’s continued purchases of Russian oil.

India remains one of the few major economies without a trade deal with the United States, despite months of negotiations and repeated exchanges between Trump and Indian Prime Minister Narendra Modi.

The State Department said the two ministers discussed “their shared interest in strengthening economic cooperation” as well as expanding bilateral civil nuclear cooperation.

The inclusion of energy and critical minerals highlights the broader strategic context of the talks, as both countries seek to reduce supply-chain vulnerabilities and strengthen long-term economic ties.

Despite the renewed dialogue, there has been no indication of a timeline for concluding a trade deal, leaving businesses and investors on both sides uncertain about the future direction of bilateral commerce.

Diplomatic signals from Washington

The latest engagement follows comments a day earlier from Sergio Gor, the new US ambassador to India, who struck an optimistic tone on the relationship.

Gor said the US and India are close partners and will resolve their differences, including the delayed trade agreement.

In a speech this week, Gor said that the two sides “continue to actively engage” and are determined to get trade talks across the finish line.

His remarks suggested a willingness within the Trump administration to stabilize ties with New Delhi despite recent strains.

However, relations have faced headwinds since Trump returned to office.

Trade tensions have been compounded by sharp rhetoric and public disagreements over the pace and causes of stalled negotiations.

Conflicting narratives and India’s concessions

Adding to the complexity, US Commerce Secretary Howard Lutnick said last week that a trade deal with India failed to materialize last year because Modi did not call Trump, a claim that Indian officials dismissed as inaccurate.

The differing accounts have highlighted the political sensitivities surrounding the negotiations.

Still, India has taken steps viewed as conciliatory by Washington.

These include reducing purchases of Russian oil, a key sticking point for the US as it seeks to isolate Moscow economically.

Despite these measures, tariffs remain in place, and India continues to face pressure to make further concessions.

Multiple phone calls between Trump and Modi over recent months have not yet resulted in a breakthrough, reinforcing perceptions that the talks have reached an impasse.

The absence of a trade agreement stands in contrast to Washington’s deals with several other major economies.

The call between Rubio and Jaishankar suggests that diplomatic channels remain open and that both sides are seeking to prevent further deterioration in economic ties.

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