Amid US tariff tensions, Jaishankar and Rubio discuss trade, defence and critical minerals

 

India and the United States are keeping diplomatic channels open on trade and strategic cooperation even as long-running negotiations over a bilateral trade agreement remain unresolved.

External Affairs Minister S Jaishankar spoke with US Secretary of State Marco Rubio on Tuesday, with the two leaders discussing cooperation across trade, critical minerals, nuclear energy, defence and energy.

The call comes at a sensitive moment in India-US economic ties. Negotiators from both sides have been working for more than a year to finalise a bilateral trade deal aimed at lowering tariffs and addressing structural differences on market access, but talks have so far failed to produce a comprehensive agreement.

“Just concluded a good conversation with @SecRubio. Discussed trade, critical minerals, nuclear cooperation, defence and energy,” Jaishankar said in a post on X.

He added that both sides had agreed “to remain in touch on these and other matters,” signalling continued engagement despite unresolved trade frictions.

India and the US have set a target of more than doubling bilateral trade to $500 billion by 2030. As part of efforts to bridge the trade gap, New Delhi has committed to expanding purchases of US energy and defence equipment. However, trade talks last year stalled after negotiators were unable to reconcile key differences.

Ambassador signals continuity

The phone call also comes days after Sergio Gor assumed charge as the US Ambassador to India, raising expectations of renewed diplomatic momentum.

Soon after taking office, Gor said India would be invited to join Pax Silica, a US-led strategic initiative focused on securing supply chains linked to silicon, advanced manufacturing and artificial intelligence. The initiative aims to work with trusted partners to reduce strategic dependencies and protect critical technologies.

Describing ties between Prime Minister Narendra Modi and US President Donald Trump, Gor said, “Real friends can disagree but always resolve their differences,” adding that “both sides continue to be actively engaged.”

Trade negotiations, however, remain politically sensitive. Talks broke down last year after neither side could bridge key gaps, prompting Trump to double tariffs on Indian goods to 50 per cent in August. The move placed India among the most heavily tariffed US trading partners, with an additional 25 per cent levy imposed over New Delhi’s continued purchase of Russian oil.