New US ambassador to India pushes for deeper trade ties despite tension over Russian oil

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NEW DELHI (AP) — The U.S. and India are actively engaged on a bilateral trade agreement to deepen economic and strategic partnership, the U.S. ambassador-designate to New Delhi said Monday.

Since Russia’s full-scale invasion of Ukraine in February 2022, India has emerged as the second biggest buyer of Russian crude after China, upsetting the Trump administration, which criticized the purchases as helping fuel Moscow’s war machine.

In August, President Donald Trump signed an executive order to place an additional 25% tariff on India for its purchases of Russian oil, bringing the combined tariffs imposed by the United States to a steep 50%.

A close aide of Trump, the new ambassador-designate, Sergio Gor, said the next call between the two sides on trade-related matters was scheduled Tuesday.

“Real friends can disagree, but always resolve their differences in the end,” Gor said in an address on his first day in office at the U.S. Embassy. “Remember India is the world’s largest nation so it’s not an easy task to get this across the finish line, but we are determined to get there.”

Gor, who is also the U.S. special envoy to South and Central Asia, announced that India will be formally invited next month to join a U.S.-led strategic initiative called Pax Silica as part of a broader partnership.

The initiative aims to build a secure silicon supply chain, from critical minerals and energy inputs to advanced manufacturing, semiconductors and artificial intelligence. Nations that joined it last month include Japan, South Korea, U.K. and Israel.

Gor’s comments on bolstering trade and economic ties with India highlights a renewed push to anchor the partnership at a time the relationship has strained following Washington’s mounting pressure on New Delhi to stop buying discounted Russian crude oil.

India and the U.S. have been negotiating a bilateral trade agreement since early last year. They hoped to conclude the first tranche by the fall of 2025, but it hasn’t come through mainly due to differences over sourcing of Russian oil, and Indian negotiators facing pressure to protect small farmers and domestic industries.

Gor said trade was an important aspect of the relationship, but the countries will also continue to work closely in areas such as security, counter terrorism, energy, technology, education and health.

In the face of steep U.S. tariffs, India has in recent months accelerated a push to finalize several free trade agreements. It signed one with Oman last month and concluded talks with New Zealand.