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India, US hold dialogue on trade and energy as Trump’s new tariffs set to kick in

Indian and US officials discussed trade, energy security, and defense cooperation in a virtual meeting, aiming to strengthen bilateral ties amid tensions.

Updated on: Aug 27, 2025 04:28 AM IST
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New Delhi Senior Indian and US officials discussed cooperation in key areas such as trade and investment, energy security, counterterrorism and the signing of a new 10-year framework for the Major Defence Partnership at a virtual meeting held this week amid a downturn in bilateral ties.

US President Donald Trump meets with Indian Prime Minister Narendra Modi at the White House in Washington, DC US, February 13, 2025. (File Photo/REUTERS)
US President Donald Trump meets with Indian Prime Minister Narendra Modi at the White House in Washington, DC US, February 13, 2025. (File Photo/REUTERS)

The intersessional dialogue under the 2+2 mechanism -- which brings together the foreign and defence ministries of the two countries -- was held virtually on August 25, India and the US said in separate statements on Tuesday.

This dialogue is part of preparations for the 2+2 meeting between the defence and foreign ministers of the two sides. Monday’s dialogue saw the officials advancing bilateral initiatives, discussing regional security developments, and exchanging perspectives on a number of shared strategic priorities, the external affairs ministry said in a statement.

“They discussed trade and investment; energy security, including strengthening civil-nuclear cooperation; critical minerals exploration; counter-narcotics and counterterrorism cooperation; and more,” the statement said.

The officials agreed to build on the progress made in these areas under the framework of the India-US Compact or Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology, which was finalised when Prime Minister Narendra Modi visited the US in February to meet US President Donald Trump.

The two sides reaffirmed their commitment to “promoting a safer, stronger and more prosperous Indo-Pacific region through the Quad”, the statement said.

“The dialogue concluded with the chairs expressing their appreciation for the productive meeting and eagerness to continue enhancing the breadth and depth of the bilateral relationship in a manner that benefits the people of India and the United States,” it said.

The additional secretary (Americas) in the external affairs ministry, Nagaraj Naidu Kakanur, and the joint secretary (international cooperation) in the defence ministry, Vishwesh Negi, co-chaired the dialogue with the US senior bureau official for the bureau of South and Central Asian affairs, Bethany P Morrison, and the acting assistant secretary of defence for Indo-Pacific security affairs, Jedidiah P Royal.

The meeting was held shortly before the Trump administration’s 25% reciprocal tariff on Indian goods kicks in by August 28. This is in addition to a 25% punitive tariff on India over buying Russian oil.

The Trump administration’s tariff policies and a stalemate in negotiations for a bilateral trade deal have hit bilateral ties that were built up over the past two decades. External affairs minister S Jaishankar has described trade negotiations, energy purchases from Russia and US assertions of mediation between India and Pakistan as the three main issues affecting bilateral relations.

 
ABOUT THE AUTHOR
Rezaul H Laskar

Rezaul H Laskar is the Foreign Affairs Editor at Hindustan Times. His interests include movies and music.

Follow India news real-time updates and the latest news covered on Hindustan Times, featuring today's critical updates on Sonam Wangchuk LIVE and more across India.
Follow India news real-time updates and the latest news covered on Hindustan Times, featuring today's critical updates on Sonam Wangchuk LIVE and more across India.
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