India US Trade Talks Mark ‘Positive’ Turn After Tariff Standoff

  • India–US trade talks termed “positive” after months of tariff tensions.
  • Brendan Lynch meets Rajesh Agrawal in Delhi to discuss next steps.
  • Meeting seen as precursor to sixth round of negotiations.
  • 25% US penalty on Russian oil purchases, plus tariffs, had strained ties.
  • Trump signals thaw, calls Modi a “very good friend” on Truth Social.

GG News Bureau
New Delhi, 16th Sept: Talks between India and the United States on a bilateral trade agreement—the first since former US President Donald Trump imposed 50% tariffs—have been described by both sides as “positive,” signalling a possible thaw after months of friction.

“Assistant US Trade Representative Brendan Lynch had a positive meeting in Delhi with his counterpart, Ministry of Commerce and Industry Special Secretary Rajesh Agrawal on September 16 to discuss next steps in bilateral trade negotiations,” a US Embassy spokesperson said on Tuesday.

A corresponding statement from the Ministry of Commerce and Industry echoed the optimism: “Acknowledging the enduring importance of bilateral trade between India and the US, the discussions were positive and forward-looking, covering various aspects of the trade deal. It was decided to intensify efforts to achieve early conclusion of a mutually beneficial Trade Agreement.”

Mr. Lynch and his team arrived in India on Monday night for the meeting, which Indian government sources stressed was not the sixth round of formal negotiations but a “precursor” to it.

Tensions escalated after Washington announced a 25% penalty for New Delhi’s purchase of Russian oil, on top of the 25% tariffs, on July 30. The measure took effect August 27. India has called the tariffs “unfair,” questioning their logic given that China remains the largest buyer of Russian oil and the European Union imports the most LNG from Moscow.

Relations were further strained by statements from Mr. Trump, who has derided India’s economy as “dead,” and by his trade adviser Peter Navarro, who labelled India’s Russian oil imports “blood money.”

Signs of reconciliation emerged last week when Mr. Trump posted on his Truth Social platform: “I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!”

Prime Minister Narendra Modi responded on X, underscoring the partnership: “India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest… I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people.”

Negotiations for the bilateral trade agreement began in February, with both nations initially hoping to finalise the first segment by this fall. Five rounds have been completed so far, but the sixth—scheduled for August 25–29—was postponed.