US team in Delhi for trade talks, first after Trump's 50 pc tariffs on India

The US trade delegation, led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, which arrived in New Delhi late Monday evening (September 15), is scheduled to hold discussions with officials from India’s Commerce Ministry officials on Tuesday.

This marks the first in-person dialogue between the two nations since high-stakes negotiations for a trade agreement broke down. According to an Indian Express report, which quoted officials in New Delhi, the US delegation is expected to stay for only a day.

Also Read: US chief negotiator Brendan Lynch to arrive in Delhi for India-US trade talks

US trade delegation arrives in Delhi

Trade talks between India and the US had stalled after the US imposed an additional 25 per cent tariff on India, effective August 27, in retaliation for New Delhi's purchase of Russian oil. This was in addition to the 25 per cent reciprocal tariff imposed by the Trump administration earlier on August 7.

"India and the US have been engaged in talks at various levels, and the US trade team led by their chief negotiator is reaching India tonight, and we will be holding talks tomorrow to see what the future of talks will be," said India’s chief negotiator and Special Secretary in the Ministry of Commerce, Rajesh Agarwal, speaking to reporters.

These developments follow a period of strained trade relations, with India blaming "non-trade issues" for the disruption. Officials reportedly said that the two countries were nearing a deal, but the negotiations collapsed when Washington objected to India’s Russian oil imports, a move New Delhi defended as a matter of national sovereignty.

Easing of India-US trade tensions

An official told The Indian Express that this is not a formal round of negotiations, but only an attempt to "find common ground" with the US. The two sides have had virtual discussions, but progress has been slow due to an "unconducive environment".

Commerce Secretary Sunil Barthwal said discussions have been ongoing at the diplomatic level, on the levels of trade, chief negotiators, and ministers. Further courses of action will be discussed at Tuesday's meeting. He said overall, there is a "positive frame of mind" in both countries with respect to trade issues.

Also Read: US urges G7 tariffs on India, China over Russian oil imports

Delayed bilateral trade negotiations

The talks follow the much-delayed arrival of the US delegation in New Delhi and may signal a thaw in bilateral ties after weeks of criticism from Washington, followed by a gradual softening of tone from US President Trump in a bid to salvage ties with India.

Brendan Lynch will head the US side during the day-long meeting, while India will be represented by senior Commerce Ministry official Rajesh Agarwal, according to Reuters.

There have already been five rounds of talks and this will be the sixth round of discussions, originally scheduled between August 25 and 29 but later postponed. Both countries had aimed to conclude an interim trade deal by the fall of 2025.

However, talks hit a deadlock over US demands for greater access to India’s agricultural and dairy sectors, areas that New Delhi considers non-negotiable.

Also Read: Trump says tariffs on India over Russian oil causing rift in US-India ties

'India coming to the negotiating table'

Last week, Trump expressed optimism about reaching a trade deal with India. Prime Minister Narendra Modi responded by saying the negotiations could unlock the "limitless potential" of the India-US partnership.

Coinciding with the US team’s arrival in New Delhi, White House trade adviser Peter Navarro on Monday commented that India was "coming to the negotiating table."

Navarro, in the past, had called India "the Maharaja of tariffs", reiterating that India has the "highest tariffs" of any major country. He had also criticised India for buying Russian oil and accused New Delhi of profiteering from Moscow’s war in Ukraine and branded it Kremlin’s "laundromat".