NEW DELHI/WASHINGTON – Negotiations between United States and India over a landmark trade agreement, which started in March 2025 and saw four rounds of talks, suddenly came to a halt.
Experts believe May 2025 conflict between Pakistan and India played key role in causing a rift between the two allies, leading to a freeze in trade discussions. The nearly four-day clash between nuclear-armed neighbors ended amid conflicting claims by US President Donald Trump, who bragged big time about the ceasefire.
This created political challenges for Indian Prime Minister Narendra Modi, with opposition parties questioning government’s stance during parliamentary debates on the matter.
Tensions escalated when, shortly after parliamentary discussions, President Trump imposed 25pc tariff on Indian imports and announced heavy penalties on petrol imports from Russia, further straining ties. This marks major departure from warmer ties seen during Trump’s first term, when Modi and Trump were seen as close allies, often addressing each other as “my friend.”
Political analysts link souring ties to Modi’s decision not to meet Trump during crucial visit last year, reportedly on advice from Indian diplomats who doubted Trump’s electoral prospects. After Trump’s re-election, his administration launched crackdown on illegal immigrants, including many from India, an action Modi reportedly chose not to confront directly.
Defense cooperation has also been affected. During Modi’s Washington visit in February, Trump announced plans to sell advanced F-35 fighter jets to India, a claim denied by Indian officials and met with skepticism by Indian military leaders, citing the jets’ incompatibility with regional needs and high costs.
With upcoming Quad summit in New Delhi, Trump’s planned visit remains uncertain amid the current diplomatic chill.
Those familiar with development warn that Trump’s unpredictable style and use of threats have complicated US-India ties. India appears to be balancing its options, growing closer to alternative global partners like BRICS.
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