U.S., India Kick Off New Round of Trade Talks

(MENAFN) A fresh round of trade negotiations, Indian and US officials met on Monday to discuss a bilateral deal, weeks after President Donald Trump imposed sweeping 50% tariffs on Indian exports. Leading the US side, Brendan Lynch, the US Trade Representative for South Asia, took charge of the talks in the Indian capital.

India’s Ministry of Commerce and Industry described the discussions as “positive and forward-looking.” Both parties agreed to ramp up efforts to reach a “mutually beneficial” agreement at the earliest, according to an official statement.

While this was the first meeting since the implementation of the new tariffs, the talks are part of a broader ongoing dialogue initiated after Trump assumed office.

The negotiations, initially slated for August 25, were delayed when talks hit a deadlock and the US delegation reportedly canceled their visit. This came immediately following Trump's decision to impose a 25% tariff on India over its continued purchases of Russian oil and defense equipment. The new duties compounded the existing 25% tariff under the so-called Liberation Day tariffs, bringing the total to 50%.

Earlier, US Commerce Secretary said the trade deal would only be resolved once India ceases its Russian oil imports.

India and the US had initially planned to finalize an interim trade deal by the fall. However, progress stalled due to differences over US demands for broader access to India's agricultural and dairy sectors, which New Delhi views as both economically and politically sensitive. Prime Minister Narendra Modi made it clear in August that India would “stand like a wall” to safeguard the interests of its farmers.

On Tuesday, Indian Petroleum Minister Hardeep Singh Puri reiterated India’s stance, telling India Today, “An India-first approach will guide our discussions.” He expressed confidence in a positive outcome from the ongoing talks.

Meanwhile, the Trump administration has increased pressure on India to halt its Russian oil imports as a condition for gaining better access to US markets. Since the escalation of the Ukraine conflict in February 2022, Russia has become a critical supplier, accounting for nearly 40% of India’s crude oil imports. Furthermore, India has grown into a key exporter of refined petroleum products to Europe since 2023.

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