THE much-awaited trade deal between India and the United States is not happening soon. Recent statements from both sides have made it clear that the negotiators have arrived at a point from where only a drastic policy change can pave the way for signing of a final deal. The deal framework is in place, signed in February by the two countries, but now with more sticking points emerging due to various reasons, finalisation of the agreement seems highly unlikely till normalcy is restored in bilateral relations by Washington. It is now a wait and watch game, something that is for India’s liking. A day after United States Trade Representative (USTR) Mr. Jamieson Greer talked about both countries identifying a “universe of items that are sticking points”, Finance Minister Ms. Nirmala Sitharaman has spelled out the actual condition of the trade talks.

 

Her mention of both sides reaching a plateau beyond which giving or taking might be very, very difficult confirms that the negotiations have hit the wall and India is in no hurry to get the process going again. The Indian strategy is perfectly in tune with the modern thinking where countries are presenting themselves as equals and not as secondary side in a deal. New Delhi has been holding its ground firmly in signing trade agreement with Washington ever since US President Mr. Donald Trump decided to weaponise tariffs instead of using it as an instrument of negotiation. India has valiantly defied the tariff bombs and has been practicing its strategic autonomy notwithstanding Mr. Trump’s threats.

 

The present “plateau” in the trade talks, too, has come against the backdrop of another misplaced American bravado. The trade talks were making significant progress till Mr. Trump went back to his tactics of intimidation despite experiencing the Indian response in the past. A fresh challenge has come up in the negotiations after the US President signed the Lindsey Graham Sanctioning Russia and Iran Act 2026 giving him the authority to impose tariffs up to 100% on countries buying oil and gas from Russia. India is the biggest importer of Russian oil going against the Western countries’ diktat of isolating Moscow. It has remained a bone of contention between the two sides and a bitter pill for the Trump administration . The Russia Sanctions Act has complicated things further. In February, the US had agreed to remove the additional 25% tariff on imports from India in recognition of India’s commitment to stop purchasing Russian oil. Within months, Mr. Trump has gone back to his threatening ways. India has already conveyed to the US about its commitment to energy security for its 1.4 billion people.

 

The assertion has come directly from the top officials including External Affairs Minister Mr. S Jaishankar. Now, with the trade talks coming to a standstill, India has delivered its message that it was not going to cower down in face of new economic threats. There is absolutely no harm in waiting for the right atmosphere to resume negotiations. India must wait for a decision on an investigation launched by the US under Section 301 of the Trade Act of 1974. The investigation is expected to establish if India has excess industrial capacity and is hurting American companies with its output. Though the Russia Sanctions Act cannot be annulled by the courts, India has the capacity to absorb its shocks if implemented. It has already identified new markets for Indian businesses in case exports to the US come down after the proposed tariffs for purchasing Russian oil. Trigger for the halt in trade talks and sudden emergence of “sticking points” goes beyond commerce. Current geopolitical situation and India’s growing footprint as a trustworthy partner for mediation and business has not gone down well with Washington. With its own situation in the Iran war getting messier, the US is finding it difficult to concentrate on other international developments including the Russia-Ukraine war. India has emerged as the most practical voice in the current phase and its echo is getting louder for the US to cope with.