New Delhi, Jan 12, 2026: The United States and India are actively working to finalize a bilateral trade agreement, according to US ambassador-designate Sergio Gor, signaling Washington’s intent to reset relations after a period of severe strain. Gor, who will formally assume his role as the US envoy to India later this week, spoke to reporters at the US embassy in New Delhi on Monday, highlighting the “strategic importance” of the partnership between the two nations.

“No partner is more essential than India. In the months and years ahead, it is my goal as ambassador to pursue a very ambitious agenda. We will do this as true strategic partners, each bringing strength, respect, and leadership to the table,” Gor said. He emphasised that the India-US relationship is anchored at the highest levels and that real friends can disagree, but differences are ultimately resolved.

Gor confirmed that trade negotiations between India and the US are ongoing. “Both sides continue to actively engage. In fact, the next call on trade will occur tomorrow,” he said, underscoring Washington’s determination to conclude a deal despite challenges. He added, “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.”

Background of Bilateral Strain

India-US ties hit a low point last year after former President Donald Trump imposed tariffs of up to 50% on Indian exports, including a 25% punitive levy on purchases of Russian oil. The move triggered widespread criticism in New Delhi, strained trade relations, and disrupted dialogue on key sectors. While multiple rounds of negotiations have been held since early 2025, disagreements persist, particularly regarding US demands to lower tariffs and open India’s farm and dairy sectors—areas India considers its red lines.

The tensions were compounded last week when US Commerce Secretary Howard Lutnick suggested that the trade agreement could not be concluded in 2025 because Prime Minister Narendra Modi did not personally call President Trump. The Indian government rejected this assertion, maintaining that New Delhi was negotiating in good faith but adhering to its domestic priorities.

Pax Silica Initiative and Strategic Collaboration

In addition to trade, Gor announced that India would be invited to join Pax Silica, the US-led initiative launched in December 2025 to build a secure and resilient supply chain for semiconductors, AI technology, and other critical industries. Currently, Japan, South Korea, and the UK are full members. Gor described India’s inclusion as a “full membership” next month, reflecting its strategic significance in technology and innovation sectors.

“The US and India will also continue working closely on other key areas, including security, counter-terrorism, energy, technology, education, and health,” Gor said, signalling that cooperation will extend well beyond trade and investment.

Possible Trump Visit

Gor also touched upon a potential visit to India by Donald Trump, noting that no fixed timeframe had been set. “I…hope that the President will be visiting us soon, hopefully in the next year or two,” he said. Sources familiar with the matter have linked a Trump visit to the successful conclusion of the trade deal. The visit is also seen as integral to the next Quad Leaders Summit, which India will host after months of delay.

During a recent dinner, Gor said, Trump recounted his “incredible experience” visiting India in 2020 and spoke warmly about his friendship with Prime Minister Modi. “He conveyed his warm wishes to the people of India, especially his dear friend Modi,” Gor added.

Trade Deal Challenges

While both nations are committed to concluding the deal, several sticking points remain. The US has consistently pushed for lower tariffs on goods imported from India, alongside greater access to Indian agricultural and dairy markets. India, on the other hand, has insisted on protecting its domestic industries and ensuring that any agreement is balanced and mutually beneficial.

Observers note that the trade deal is not only an economic instrument but also a strategic signal, reflecting the importance both nations attach to technology, energy, and security cooperation. The agreement, once concluded, could pave the way for expanded collaboration in semiconductors, AI, critical minerals, and advanced manufacturing—a priority for both Washington and New Delhi amid global competition.

Resetting Bilateral Relations

Gor’s remarks mark a shift from recent rhetoric, which included pointed criticisms and concerns over trade and tariffs. By highlighting ongoing engagement and strategic alignment, the ambassador-designate signalled Washington’s intent to reset bilateral ties and move toward a more constructive phase in the relationship.

Experts suggest that successful completion of the trade deal, coupled with India’s inclusion in Pax Silica, could serve as a turning point in economic and strategic relations. “This is about more than just tariffs; it’s about aligning two large democracies on trade, technology, and supply chain security in a rapidly evolving global landscape,” said an analyst familiar with Indo-US relations.

Conclusion

Ambassador-designate Sergio Gor’s statement comes at a critical juncture in India-US relations. With the bilateral trade deal under negotiation, India’s impending membership in the Pax Silica initiative, and ongoing discussions on broader strategic and technological cooperation, both nations appear intent on reinforcing a comprehensive partnership. Gor’s remarks underline the importance Washington places on India as a global partner and signal renewed momentum to overcome the strains that marked the past year.

The coming weeks will likely see intensified engagement between Indian and US officials, both to finalize the trade deal and to cement India’s role in critical technology supply chains, while paving the way for high-level diplomatic interactions, including a potential visit by President Trump.

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