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US State Department Says India a Strategic Ally and Trade Talks Going On

By Ankur Chandra | Updated at: Aug 8, 2025 01:03 PM IST

US State Department Says India a Strategic Ally and Trade Talks Going On
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United States Department of State has called India a key strategic ally . It emphasized that it would continue “full and frank dialogue” despite rising trade tensions. Strains between the two nations have grown over issues such as high tariffs, a persistent trade imbalance, and India’s ongoing purchases of Russian oil.

While President Donald Trump ruled out fresh trade talks until the tariff dispute is resolved, the U.S. State Department appears to be taking a more measured approach. Spokesperson Tommy Pigott said that both sides are addressing their differences through ongoing bilateral talks, adding that sustained engagement remains central to Washington’s approach toward New Delhi.

Two Main Concerns of the US

According to Pigott, Washington’s major concerns were:

  1. India’s trade surplus with the US
  2. Russian oil purchases in disregard of pressure from sanctions

He underscored that President Trump has already taken direct action and has been “very clear” on all these things. “You’ve seen him take action directly on that,” Pigott said, referring to the increased tariffs. The US, Pigott continued, views India as a partner with whom honest and open conversations are necessary. “Ultimately, this is about a frank and full dialogue. That’s what it means to advance American interests,” he added.

Trump Rules Out Trade Talks Until Tariff Row Ends

Speaking to reporters in the Oval Office, Trump was asked if he expected further talks after the announcement of steep tariffs. He responded, “Not until we get it resolved.” His words came after the threat of secondary sanctions against countries that are engaging in substantial trade with Moscow, an action viewed as taking a shot at India’s oil imports.

Trump signed on Wednesday an executive order mandating a 25% extra tariff on Indian imports, doubling the tariff to 50%. The new higher tariffs, effective from August 27, are a sequel to habitual threats to New Delhi for buying Russian oil.

Dialogue to Continue Amid Rising Pressures

When questioned whether India would lean towards China or move towards other members of the BRICS in response to US trade actions, the State Department reaffirmed that “bilateral discussions with India will continue”. Pigott clarified that efforts continue to narrow differences in a manner that deepens both nations’ interests without weakening their strategic partnership.

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