India-US trade talks continue after Modi-Trump call leaves sanctions unmentioned

Amid ongoing efforts to arrive at an interim trade agreement with the US, Prime Minister Narendra Modi had a phone conversation with President Donald Trump on Wednesday about the pillars of the relationship that are again facing headwinds owing to America's Sanctioning Russia and Iran Act (SRIA).

The Indian readout and the Prime Minister's post on X made no mention

of SRIA, which was signed into law by Trump a fortnight ago.

A day after the US House of Representatives passed the draft legislation on September 16, India had warned that this law empowering the President to slap up to 100 per cent penal duty on India for doing business with Russia and Iran could impact the bilateral relationship and also the international energy market while maintaining that the current policy of diversified sourcing of oil would continue.

One of the key provisions of the new law empowers the President to increase the rate of duty up to 100 per cent ad valorem on all goods imported into the US from a country that was among the five largest importers of Russian-origin crude oil or natural gas if such country knowingly makes new purchases of such products after enactment of the bill.

Announcing the tele-con, Modi in his post said: "Had a productive conversation with President Trump. We reviewed our bilateral cooperation in trade, defence, energy, critical technologies and other areas. We agreed to maintain close engagement to take our Comprehensive Global Strategic Partnership forward. We also exchanged views on

regional and international issues, including ongoing efforts to advance global peace and security."

Wednesday's call with Trump was preceded by a face-to-face meeting between external affairs minister S. Jaishankar and US secretary of state Marco Rubio last week on the sidelines of the United Nations General Assembly. During the meeting, Jaishankar articulated India's concerns over SRIA and placed it on public record.

The state department's readout on the conversation said: "The two also discussed sanctions that could be levelled against states that engage economically with Russia and Iran. The secretary emphasised that the United States remains well-positioned to help regional partners address their energy security challenges."

Commerce minister Piyush Goyal is in the US to attend the G20 Trade

Ministers meeting and will also hold bilateral discussions with his American counterpart.

According to a statement issued by the commerce ministry on Monday on the visit, "Goyal will also engage bilaterally with his counterpart from the United States as part of ongoing efforts to advance a balanced and mutually beneficial India-US Bilateral Trade Agreement and finalise an interim deal in line with the Joint Statement of 7 February 2026", which presented a framework for an interim agreement regarding reciprocal and mutually beneficial trade.