On January 13, 2026, the United States and India resumed negotiations to establish a new trade relationship between the two countries under the leadership of newly appointed U.S. Ambassador Sergio Gor. The goal of the negotiations is to increase total U.S.-India trade from approximately $190 billion as of today to $500 billion by 2030. To achieve this goal, negotiations will be conducted through two separate processes: a process focused on tariffs and a process for creating a comprehensive bilateral trade agreement. Together, these two processes represent U.S.-India trade flows during the 2024-2025 fiscal years of approximately $131.84 billion and increasing economic interdependence between the two countries.
The high level of US tariffs on Indian imports, which have been close to 50% since August of 2025 (including tariffs created due to the U.S.'s decision to impose a 25% tariff on products sold to India because of the purchases of Russian oil) has created the biggest dispute between the two countries. The United States has been requesting that India lower its tariffs on corn, dairy products, and nuts while India is defending its farmers and demanding that the United States allow for reciprocal access for India's textiles and engineering products. Also, non-tariff barriers, intellectual property enforcement, and data transfer rules will make it more difficult for both countries to agree on the tariffs and to develop a legally binding agreement.
The ongoing negotiations are occurring within the framework of the United States' strategy of creating the "Pax Silica" initiative to decrease U.S. dependence on China for semiconductor and critical mineral products. On January 13, U.S. Secretary of State Rex Tillerson and Indian External Affairs Minister Sushma Swaraj discussed trade and rare earth mineral products, as well as U.S.-India nuclear and defence cooperation. Furthermore, the strong personal and political ties between former U.S. President Donald Trump and Indian Prime Minister Narendra Modi will be utilized as a potential way to resolve trade disputes and develop a deeper and more economically and strategically aligned U.S.-India partnership.


China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery
South Korea Remains MSCI Emerging Market Despite Reform Progress
Trump’s Iran Strategy: What Has Been Achieved After Three Months of Conflict?
US Dollar Hits One-Year High as Hawkish Fed Outlook Overshadows Middle East Developments
SpaceX Stock Gets $175 Target as Analysts See Massive Growth Ahead
Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows
U.S.-Iran Diplomacy Helps Drive Gasoline Prices Down 15% From May Highs
Wall Street Slides as AI Stocks Tumble Following South Korea Tech Sell-Off
Singapore Inflation Stays Muted in May as Core CPI Misses Forecasts Ahead of MAS Review
Asian Stocks Slide as AI Rally Pauses, South Korean Chipmakers Lead Regional Decline
Japan Manufacturing Growth Accelerates in June as Orders Surge Despite Iran War Cost Pressures
With Iran and the US signing a peace deal, where does that leave Benjamin Netanyahu?
Gold's 365-Day EMA Streak Since Oct 2023 Faces Its First Real Test at $3,980 — Break or Bounce to $4,140?
Australia Inflation Cools in May, But Core CPI Keeps RBA Rate Hike Risks Alive 



