India and US Engage in Critical Trade Talks Amid Stalled Negotiations

Tue Sep 16 2025 14:26:37 GMT+0300 (Eastern European Summer Time)

High-level trade discussions between India and the United States are underway in Delhi, aiming to revive stalled negotiations due to recent tariff impositions by the US. The talks represent a significant step towards resolving tariffs that have strained bilateral relations.

A day-long trade dialogue between Indian officials and a US delegation led by Brendan Lynch aims to rekindle stalled trade negotiations. Following significant tariffs imposed by the US on Indian goods and India's continued purchase of Russian oil, the atmosphere for negotiations has cooled. Nonetheless, both countries are reportedly optimistic about finding common ground.

India and the US are holding a day of trade talks, sparking hope that stalled negotiations on a bilateral agreement will soon resume.

A team led by US trade negotiator Brendan Lynch is in Delhi to meet officials from India's commerce ministry.

India said the meeting doesn't mark the start of the next round of negotiations, describing it as a discussion about trying to see how an agreement can be reached.

Negotiations on a trade deal had stalled after US President Donald Trump imposed a hefty 50% tariff on Indian goods, partly as a penalty for Delhi's purchase of Russian oil and weapons. India has defended its decision, citing domestic energy needs, and called the tariffs unfair.

The hefty duties, along with strong criticism of India by Trump and his key officials, have led to a swift and surprising deterioration in ties between the allies.

India is a major exporter of goods, including garments, shrimp, and gems and jewellery to the US, and the tariffs have already impacted production and livelihoods.

The Tuesday meeting between Indian and US officials is being closely watched.

This is not an official round of negotiations but it will definitely be a discussion on the trade talks and on trying to see how we can reach an agreement between India and the US, Rajesh Agrawal, leading the discussions on India's behalf, told local media.

A round of negotiations was called off last month following Trump's tariff announcement and India's refusal to stop buying Russian oil.

However, in recent days, hopes have risen; Trump administration officials have sounded more conciliatory and India has confirmed that discussions are ongoing.

US trade adviser Peter Navarro mentioned that India is coming to the table during a CNBC News interview.

In the CNBC interview, Mr Navarro referenced last week's social media exchanges between Trump and Modi, emphasizing ongoing negotiations.

Despite rising optimism, key disagreements remain, especially in agriculture and dairy sectors, which could impact the progress of these discussions.

Overall, while both sides express a willingness to communicate and negotiate, the complexities of trade policies present substantial challenges ahead.