One year after Donald Trump assumed office for his second term as American President, his administration’s South Asia policy is beginning to take shape.
Over the past year, the Trump administration paid very little attention to the smaller countries of South Asia, as Trump was focused on preventing or stopping major wars occurring in different parts of the world. The Trump administration has recalled several ambassadors from South Asian countries, including Nepal, and has not yet appointed their replacements.
Meanwhile, the administration’s relationship with India witnessed a tumultuous phase due to tariff war. Now, the relationship between India and the United States is returning to normalcy following the settlement of trade disputes.
This week, at least three senior American officials spoke about their approach to South Asia. S. Paul Kapur, Assistant Secretary in the Bureau of South and Central Asian Affairs at the U.S. State Department, appeared before the House Foreign Affairs Committee to outline Washington’s South Asia policy.
According to Kapur’s statement, the principal agenda of the Trump administration is to expand trade relationships with South Asian countries, as it is doing elsewhere. In his second term, Trump has employed tariffs as a tool to pressure governments to make trade more favorable to the United States.
Kapur further added: “Just last week, President Trump and Prime Minister Modi reached agreement on a historic trade framework. And two days ago, the Trump Administration signed a trade deal with Bangladesh, providing American exporters with access to Bangladesh’s market of 175 million people.” But, U.S has a very minimal trade with Nepal, Maldives and Sri Lanka.
Beyond trade, he outlined three broad approaches to strategic capacity-building that the Trump administration is deploying in South Asia: defense cooperation, targeted investment, and diplomacy.
Defense cooperation includes military sales and transfers, co-development of systems and platforms, and bilateral and multilateral exercises. Targeted investment combines U.S. seed funding, American technology and expertise, and private industry participation.
Diplomacy involves institutionalized engagement between senior leaders, as well as ad hoc interactions to address emerging opportunities or challenges, along with strategic messaging to support U.S. initiatives.
Regarding the smaller countries of South Asia, the Trump administration’s first priority appears to be countering growing Chinese influence. Kapur said: “Bangladesh, Nepal, Maldives, Sri Lanka and Bhutan’s strategic locations afford them outsized importance, but also can make them targets for coercion.”
He added that defense cooperation with the United States helps these countries protect their borders and waterways against encroaching powers, while carefully targeted investment can provide high-quality, transparent, and non-coercive support for critical infrastructure such as ports, telecommunications networks, and energy facilities—helping them avoid the dangers of debt-trap diplomacy. This indicates that the U.S. intends to limit Chinese investment in those countries.
Similarly, House Foreign Affairs Subcommittee on South and Central Asia Chairman Bill Huizenga said that strengthening ties with New Delhi through defense cooperation, trade, and technology partnerships advances shared interests.
He stated: “I look forward to increasing cooperation, co-production, and investment, especially under the new framework negotiated by the President. Bordering India, Nepal and Bangladesh are undergoing political transformations.”
He noted that Bangladesh will hold free elections tomorrow following its July 2024 revolution, which ousted an authoritarian government in September 2025.
In Nepal, youth-led protests overthrew the government, and the country will hold democratic elections next month. According to him, both instances offer new chapters for engagement in South Asia, shaping U.S. relations with these new governments.
He further added that South and Central Asia is a dynamic region, where young and growing populations are more often drawn to Western cultures and values than to China’s authoritarian alternative.
“Strategic U.S.-led diplomacy will make a difference in building alliances and achieving our mutually beneficial goals throughout the region,” he said.
“Our strategy in South Asia must be comprehensive, anchored in strong partnerships, economic engagement, and a commitment to democratic values. Our engagement in the region must advance American interests, while also contributing to a more secure, prosperous, and free Indian Ocean,” he added.
Adm. Samuel J. Paparo, commander of the United States Indo-Pacific Command (INDOPACOM), has said his visit highlighted Nepal’s leadership in promoting regional stability, disaster preparedness, and peacekeeping. He visited Nepal ahead of the March 5 elections to the House of Representatives (HoR), which are taking place against the backdrop of the September 8–9 Gen Z protest.
The visit highlighted Nepal’s leadership in promoting regional stability, disaster preparedness, and peacekeeping. U.S.-Nepal cooperation in these areas benefits Nepali and American citizens throughout the region and supports global peacekeeping efforts, says a press statement issued by INDOPACOM after the two-day visit.
