India, US Resume Trade Talks After Trump’s Tariffs on Indian Exports Over Russian Oil Purchases

New Delhi: India and the United States returned to the negotiating table on Tuesday, seeking to revive a crucial trade deal weeks after President Donald Trump imposed punitive 50% tariffs on Indian exports in retaliation for New Delhi’s continued purchase of Russian oil.

The long-delayed arrival of the American delegation in New Delhi marked a thaw in relations, which had soured following sharp criticism from Washington. In recent days, Trump’s tone has softened, raising hopes of salvaging a deal.

The US side is being led by Brendan Lynch, Trade Representative for South Asia, while India’s delegation is headed by senior Commerce Ministry official Rajesh Agarwal. The Ministry of External Affairs is also participating, according to Reuters.

Officials stressed that Tuesday’s meeting is part of ongoing bilateral talks, not a fresh round of negotiations. The outcome, however, will shape the timing of the sixth round of the Bilateral Trade Agreement (BTA), which was originally slated for August but postponed after the tariff escalation.

Trump recently expressed optimism about concluding a trade agreement with India. Prime Minister Narendra Modi responded, saying negotiations could “unlock the limitless potential of the India-US partnership.”

India and the US had committed to finalizing an interim trade pact by fall 2025. But talks stalled over Washington’s demand for greater access to India’s agricultural and dairy markets—issues that remain non-negotiable for New Delhi.

White House trade adviser Peter Navarro signaled confidence on Monday, remarking that “India is coming to the negotiating table,” ahead of the delegation’s arrival for what is seen as a high-stakes dialogue.

Navarro has in recent weeks accused India of acting as a “laundromat” for Moscow by buying discounted Russian oil, while Trump slapped an additional 25% tariff—on top of existing 25% levies—on Indian goods. New Delhi has rejected the allegations, insisting its oil trade with Russia violates no international laws.

Indian officials have also accused the West of hypocrisy, pointing out that both the EU and US continue to import billions worth of Russian commodities.