India and the United States have returned to the negotiating table to work out a crucial trade deal, weeks after President Donald Trump imposed steep tariffs on Indian goods. The 50 per cent tariffs were announced in response to India’s purchase of Russian oil, creating strain between the two countries.
The trade discussions are being held in New Delhi after delays in the arrival of the US delegation. Officials say the talks mark a fresh effort to repair relations after weeks of sharp criticism from Washington, followed by a gradual softening in Trump’s approach.
The US side is being led by Brendan Lynch, the US Trade Representative for South Asia, while senior Commerce Ministry official Rajesh Agarwal is representing India. The negotiations are expected to last the entire day, according to Reuters.
Last week, Trump said he was hopeful about finalising a trade agreement with India. In reply, Prime Minister Narendra Modi stated that the negotiations would pave the way for “unlocking the limitless potential of the India-US partnership.”
Officials in New Delhi see the talks as a possible chance to rescue a free trade agreement that has been under strain since the tariffs came into effect on August 27. Five rounds of negotiations have already taken place, and the sixth round, originally planned for late August, had to be rescheduled.
Both countries had earlier committed to closing an interim trade deal by the fall of 2025. But talks stalled after Washington demanded wider access to India’s agricultural and dairy markets, which remain a firm red line for New Delhi.
On Monday, White House trade adviser Peter Navarro remarked that India was “coming to the negotiating table” ahead of the US team’s arrival for the discussions.
In recent weeks, Navarro had been critical of India. After Trump imposed an additional 25 per cent penalty on top of existing tariffs, Navarro accused New Delhi of profiting from Moscow’s war in Ukraine and called India a Kremlin “laundromat”.
India has strongly denied the charge, saying its oil trade with Russia does not break any international rules. Officials have also accused Western countries of double standards, noting that the EU and the US continue to purchase Russian goods worth billions.
The tariff clash and harsh words led to a sharp downturn in ties, with India strengthening its connections with Moscow and even warming up to Beijing. Observers say Trump, worried by these developments, has now shifted focus towards China. Recently, he warned of tariffs of up to 100 per cent on China over its oil dealings with Russia.