India, US Resume Key Trade Talks Amid Tariff Disputes and Russian Oil Concerns:

New Delhi, September 16, 2025 — In a significant development for global trade relations, senior officials from India and the United States have resumed discussions on a long-awaited bilateral trade agreement. This move marks a positive shift in tone after months of tension fueled by high tariffs and geopolitical disagreements. Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, arrived in New Delhi earlier this week to lead the American delegation in the trade talks. He is joined by Indian chief negotiator Rajesh Agrawal, the Special Secretary in the Department of Commerce. The renewed discussions come amid signs of softening rhetoric from both sides. US White House trade advisor Peter Navarro told CNBC on Sunday that India is now actively engaging in negotiations. “India is coming to the table. Prime Minister Narendra Modi sent out a very conciliatory, nice, constructive tweet, and President Trump responded to that. We will see how this works,” Navarro said. The two countries are working to overcome deep disagreements on tariffs and trade barriers. Navarro criticized India’s high tariffs and what he termed "non-tariff barriers" that hinder fair trade. “As a practical matter, we know that on the trade side, they have the highest tariffs of any major country. We had to deal with that, like we are dealing with every other country that does that,” he added. A major sticking point in the talks is India’s continued import of Russian oil following the start of the Russia-Ukraine war in February 2022. Navarro expressed frustration, saying, “There is this issue of India buying Russian oil, which it never did before 2022. Indian refiners got in bed with the Russian refiners immediately after the invasion, and they're making out like bandits. It’s crazy because they make money off of us in unfair trade. American workers get screwed.” Last month, former President Donald Trump raised tariffs on a range of Indian goods to 50%, citing India’s ongoing energy deals with Russia as a key reason. The move drew criticism from Indian officials but did not derail negotiations altogether. Despite these tensions, both President Trump and Prime Minister Modi have reiterated their commitment to finding common ground. In a recent post on his Truth Social platform, Trump wrote, “I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!” Modi, echoing that sentiment, said the United States and India are “close friends and natural partners” and that both teams are working diligently to wrap up the talks “at the earliest.” Commerce ministry officials in New Delhi described the latest round of discussions as a “turnaround” in bilateral ties. They expressed cautious optimism that a comprehensive agreement could soon be within reach. The outcome of these trade negotiations could have far-reaching consequences for both economies, potentially paving the way for enhanced cooperation in sectors such as technology, pharmaceuticals, energy, and defense. As global trade dynamics continue to shift, a successful US-India trade agreement would not only strengthen economic ties but also serve as a strategic counterweight to other global alliances. For now, all eyes are on New Delhi as the two nations work to bridge their differences and move towards a more balanced and mutually beneficial trade relationship.

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