U.S., India to resume trade talks after tariff dispute.
A U.S. trade delegation arrived in New Delhi this week to restart talks on a bilateral trade deal, signaling a possible thaw in what’s been a tense few months between the two countries.
The group, led by Assistant Trade Representative Brendan Lynch, is meeting with Indian officials on Tuesday—the first face-to-face discussion since planned August negotiations were called off.
Diplomatic Reset After Tariff Dispute
Things hit a rough patch back in August when the U.S. slapped 50% tariffs on Indian exports. That move combined a standard 25% reciprocal duty with an extra 25% penalty tied to India’s continued purchase of Russian oil—something the Trump administration says helps fund the war in Ukraine.
India wasn’t happy, calling the tariffs unfair and unjustified, and promptly canceled the next round of talks. Indian exports to the U.S. took a hit, dropping noticeably in August.
Renewed Optimism for Deal
But the mood seems to be shifting. Earlier this month, President Trump and Prime Minister Modi exchanged positive messages on social media, with Trump mentioning ongoing efforts to resolve trade barriers and Modi calling the U.S. a “close friend and natural partner.”
Both sides are now aiming to finalize the first phase of a trade deal by November 2025 and eventually double bilateral trade to $500 billion by 2030.
Key Sticking Points Remain
Still, there are some major sticking points. The U.S. is pushing for more access to India’s agriculture and dairy markets, which India has been reluctant to open, citing the need to protect small farmers.
India is also standing firm on its right to buy oil from Russia, arguing it’s simply going for the most affordable option.
This round of talks is being seen as a preliminary step—a chance to clear the air before a fuller sixth round of negotiations. Whether they can bridge these gaps will say a lot about where this important relationship is headed.
