India-US ties are showing signs and symptoms of likely normalization of bilateral ties marred by 7 months of trade war.  US President Donald Trump heartily greeted India on the 77th Republic Day on 26th January 2026 as he put out a strong message of historic bonds on social media with a black and white photo of him and Prime Minister Narendra Modi.

India hosted the top leaders of Europe as chief guests and guests of honor on the special day, and PM Modi put out a special message underscoring the growing strength of the India-European Union partnership. The US Embassy in India released the message from President Trump after the Republic Day parade, signaling that the tariff standoff didn’t imply the bilateral ties had suffered.

Indian and US officials said global strategic cooperation, defense, and investment ties were going on as usual. Rather, military cooperation has increased. On Republic Day, US-origin transport aircraft C-130J and Apache attack helicopters participated in the flypast.

Trade has suffered and resulted in anguish for Indian exporters since President Trump announced a whopping 50 percent tariff on Indian goods, including a 25 percent punitive levy over Russian oil purchases. But, there have been remarks from the US that a gradual decrease in Indian imports of Russian oil might bring down the extra 25% tariff hike. 

The free trade agreement (FTA) is stuck on America’s demands to open up India's farm and dairy sectors. India is firm on not doing so to protect tens of millions of its small agriculture and dairy farmers.