News Brief

India, US Resume Trade Talks Amid Tariff Dispute And Russian Oil Tensions

Arjun Brij

Sep 16, 2025, 09:57 AM | Updated 09:57 AM IST


PM Narendra Modi with US President Donald Trump (File Photo)
PM Narendra Modi with US President Donald Trump (File Photo)

India and the United States will resume negotiations on Tuesday (16 September) in New Delhi in a bid to revive a long-delayed trade agreement, weeks after President Donald Trump imposed punitive 50 per cent tariffs on Indian exports in retaliation for New Delhi’s oil purchases from Russia.

The talks come after repeated postponements of the American delegation’s visit and are being viewed as a tentative reset in ties following sharp criticism from Washington.

US Trade Representative for South Asia Brendan Lynch will head the American team, while senior Commerce Ministry official Rajesh Agarwal will represent India, according to Reuters.

Trump had recently struck a more conciliatory note, saying he was hopeful of sealing a deal with India. Prime Minister Narendra Modi responded that the negotiations would help “unlocking the limitless potential of the India-US partnership.”

Officials in Delhi see the discussions as an opportunity to rescue a free trade pact that has faltered since tariffs were enforced on 27 August.

The sixth round of talks, originally planned for late August, had been shelved after disagreements on US demands for wider access to India’s agriculture and dairy markets, a non-negotiable for New Delhi. India and the US had earlier aimed to finalise an interim deal by autumn 2025.

On Monday, White House adviser Peter Navarro remarked that India was “coming to the negotiating table,” a sign of cautious optimism in Washington.

Navarro had previously accused New Delhi of acting as the Kremlin’s “laundromat” and profiteering from the Ukraine war after Trump raised duties on Indian goods to 50 per cent.

New Delhi has consistently defended its Russian oil imports as lawful, pointing to Western purchases of Russian goods.

Trump’s subsequent shift to direct his ire towards Beijing, even threatening 100 per cent tariffs, has created space for dialogue with India.

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Arjun Brij is an Editorial Associate at Swarajya. He tweets at @arjun_brij


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