US, India Seek to Reset Ties as Trade Deal Remains Elusive photo

By Shruti Srivastava and Sudhi Ranjan Sen

Dec 8, 2025 (Bloomberg) – This week, two US delegations are in New Delhi to discuss relations with Indian officials, hoping to strengthen bilateral ties despite the ongoing challenges in finalizing a trade deal.

Allison Hooker, the under secretary of state for political affairs, is meeting with senior Indian officials, including Foreign Secretary Vikram Misri, during her visit from December 7 to 11. Following her, Rick Switzer, the deputy US trade representative, will lead another delegation.

Sources in New Delhi noted that there might not be any immediate announcement regarding a trade deal from these talks. However, the discussions are important as they show both countries are keeping communication open and are willing to maintain their relationship, even if they prefer to remain anonymous.

Back in August, President Donald Trump imposed a 50% tariff on Indian goods due to trade barriers and India’s purchase of Russian oil. Since then, he has sanctioned two major Russian oil producers, prompting Indian refiners to look for alternative sources. Recently, Trump has softened his stance towards India, saying in November that he plans to reduce tariffs “at some point.”

The US visits come shortly after Russian President Vladimir Putin’s visit to India last week, aimed at enhancing economic relations and showing support for New Delhi, despite pressure from Trump.

Switzer is set to be in India from December 9 to 11, accompanied by chief trade negotiator Brendan Lynch, to further discussions on a comprehensive trade agreement. India’s commerce secretary expressed optimism that the two countries could reach an agreement on tariff rates before the year ends.

Requests for additional information from India’s Ministry of Commerce and Industry and the Ministry of External Affairs have gone unanswered so far.

Military Exercises

New Delhi officials emphasized that both nations are actively engaging at various levels, including annual military exercises in Alaska last September and discussions on security in the US-India 2+2 Intersessional Dialogue in August. Recently, a joint working group meeting on counter-terrorism was also held.

Experts monitoring India-US relations indicate that both countries are making efforts to improve their ties after a period of tension.

“Both sides are trying to move beyond previous issues, and there have been ongoing high-level talks since the tariffs were imposed,” remarked C. Raja Mohan, a visiting professor at the Institute of South Asian Studies at the National University of Singapore.

Mohan added that this engagement reflects the commitment of both nations to address ongoing challenges in their relationship.

Relations between India and the US have also been strained due to Trump’s claims that he negotiated a ceasefire between India and Pakistan during the four-day conflict in May, which New Delhi has consistently denied.

While the recent talks signal a positive direction, uncertainties about the trade deal remain.

Ajay Srivastava, founder of the New Delhi-based think tank Global Trade Research Initiative, stated that the US should exhibit “goodwill” by removing the 25% penalty tariff related to India’s oil purchases from Russia. “The trade deal is the next step,” he added.