THE much-anticipated trade deal between India and the United States is very much on the horizon with both sides signalling rapprochement and finding a “landing point” for the stalled negotiations. This thaw amid tariff tensions is the biggest import of the meeting between US Secretary of State Mr. Marco Rubio and External Affairs Minister Mr. S Jaishankar in Mumbai apart from the toning down of anti-India rhetoric of the Trump administration in the last few days. Mr. Rubio’s meeting with EAM Mr. Jaishankar came against the backdrop of the waiver of proposed tariffs on India by US President Mr. Donald Trump. The President waived tariffs of as much as 100 per cent on buyers of Russian oil and gas which were supposed to take effect a day ahead of Mr. Rubio’s visit to India. The duties, lined up through the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, would have hit Indian products and complicated trade negotiations.

 

Washington realised the pitfalls of rubbing India the wrong way in the nick of time allowing Mr. Rubio a lot of room to give a final push to the trade negotiations. After the hint of the bilateral trade pact going nowhere, the deal has found a new energy as confirmed by Mr. Rubio as well as US Ambassador Mr. Sergio Gor. Within a month, this is a stark change in the ground situation giving Indian businesses hope of finding good deals in the huge US market. That the deal is in the final stage of negotiations can be seen from Mr. Trump’s latest remarks stating that India and the United States were “pretty close” to finalising a trade deal after more than a year of negotiations. He also signaled that the agreement would differ from Washington’s previous trade pacts which again leaves its final terms unclear. India will have to take into account these statements and Mr. Trump’s mood swings before signing the deal. New Delhi is well aware of the nature of American policies under Mr. Trump. It is taking informed steps to make its position clear on decisions aimed at harming India’s interests.

 

By steadfastly sticking to its strategic autonomy while purchasing Russian oil when the West was against doing business with Moscow during the Ukraine war, India has conveyed to the US that it was in no mood of compromising the interests of its people. It has remained the Indian response to the senseless tariffs imposed by Mr. Trump and later during the new proposal of up to 100 per cent sanctions last month. Mr. Jaishankar picked up the same agenda during his meeting with Mr. Rubio last month in New York which has clearly worked in India’s favour. The reconciliatory tone by Mr Rubio by linking waiver of the Russia Sanctions Act with the ongoing trade deal and his visit to Reliance Refinery in Jamnagar tells of a changed approach by the White House.

 

The US has showed willingness to take ahead the bilateral partnership despite the wrong noises made by officials of the Trump administration and the nonsensical tirade by Mr. Elon Musk over Starlink’s proposed entry in India. It is clear that Washington has understood the negative vibes created by both episodes even as India sent across a message that the US would have to think in a pragmatic manner on choosing its partner in South Asia. Mr. Rubio’s visit shows that the US is heavily inclined towards a fresh impetus for strategic alignment between Washington and New Delhi. Mr. Jaishankar took the opportunity to remind him of the need for a strong partnership against terrorism “in all its forms and manifestations”. This was the core point made by Mr. Jaishankar in New York when he talked about the self-centred policies by the United States affecting bilateral relations with India in current times. The EAM used diplomatic language to make his point about lack of understanding in the White House about India’s sensitivities vis-a-vis Pakistan-sponsored terrorism. It has worked well as Mr. Rubio reaffirmed the US-India shared commitment to combating terrorism. The reconciliation mode is well and truly on in Washington.