India-US trade negotiations resumed today, January 13, 2026, following US Ambassador Sergio Gor's announcement yesterday that both sides remain actively engaged. Gor, who assumed charge on Monday, stated the next call would occur today, emphasizing determination to finalize a bilateral deal despite challenges.
Uncertainty lingers as a senior Indian commerce ministry official contradicted Gor, claiming no talks are scheduled this week and no communication from Washington has been received. This follows US tariffs imposed in August 2025—50% on Indian goods including 25% linked to Russian oil purchases—and US Commerce Secretary Howard Lutnick's claim that the deal stalled due to lack of a call from PM Modi, which India rejected as inaccurate.
In a positive development, Gor announced India's invitation next month to join Pax Silica, a US-led initiative for secure silicon supply chains in semiconductors, AI, and critical minerals, alongside Japan, South Korea, UK, and Israel. This signals deepening tech cooperation amid trade frictions, with Gor calling India-US ties the "most consequential global partnership of this century."
Key Issues in Talks
Tariffs and Market Access: US seeks lower Indian duties on agriculture (corn, dairy, nuts); India wants reinstatement of duty-free status and protection for farmers.
Energy and Russia: US punitive levies on India's Russian oil imports; proposed 500% tariffs on such buyers threaten $120B exports. Agriculture/Dairy: India firm on safeguards; US pushes deeper access.
Market Reaction
Gor’s remarks sparked a Sensex rebound of nearly 800 points from lows, easing concerns over tariffs and outflows. Trump reiterated close ties with Modi, boosting sentiment.
