India and U.S. Set for Critical Trade Talks Amid Tariff Disputes

NEW DELHI, India – India and the United States will engage in trade discussions on Tuesday, September 16, raising hopes for progress weeks after President Donald Trump imposed punitive tariffs on India for purchasing Russian oil.

U.S. trade representative for South Asia, Brendan Lynch, will visit New Delhi for a one-day round of negotiations, according to Indian chief negotiator Rajesh Agarwal. Details regarding the agenda have not been disclosed.

Trump’s administration imposed a 25% tariff on Indian imports starting August 27, effectively raising some tariffs to 50% as part of an effort to increase pressure on Moscow following its invasion of Ukraine. As a result, India’s exports to the United States dropped to $6.86 billion in August from $8.01 billion in July, according to data from India’s trade ministry.

The decline in overall goods exports is concerning, as they fell to a nine-month low of $35.10 billion in August, compared to $37.24 billion in July. Meanwhile, the trade deficit decreased to $26.49 billion.

Exporters anticipate that the full impact of the heightened tariffs will be felt next month, as the punitive measures began a few weeks ago. Increased tensions between New Delhi and Washington have coincided with improved relations with Beijing, highlighted by Prime Minister Narendra Modi’s visit to China last month for the first time in seven years.

Modi also recently met with Russian President Vladimir Putin, showcasing India’s balancing act in global diplomacy. A previous planned U.S. visit to New Delhi from August 25-29 was cancelled amid disagreements, primarily concerning access to India’s agriculture and dairy markets.

However, Trump’s nominee for ambassador to India, Sergio Gor, expressed optimism last week, stating that the two nations are “not that far apart” on tariffs and suggesting that differences could soon be resolved.