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🇺🇸🇮🇳 After Trump’s 50% Tariff, US Negotiator Arrives in Delhi for Trade Talks
📰 Key Highlights:
- US imposes 50% tariff on Indian exports citing Russian oil imports.
- First in-person trade talks between India and the US after deal breakdown.
- Commerce Secretary says both sides are in a “positive frame of mind”.
- Indian exporters seek relief as US importers cancel orders.
- Oil imports from Russia and agriculture remain red line issues for India.
US Negotiator in India for Talks
A high-level US trade team led by Assistant US Trade Representative for South & Central Asia Brendan Lynch arrived in New Delhi on Monday evening. The team will hold discussions with India’s Ministry of Commerce on Tuesday, marking the first direct meeting since earlier trade negotiations collapsed.
Indian chief negotiator Rajesh Agarwal, Special Secretary in the Ministry of Commerce, confirmed the meeting and said:
“We will be holding talks tomorrow to see what the future of negotiations will be. We had been talking virtually, but progress was limited due to an unconducive environment.”
Background: Tariff Tensions
Tensions escalated after the US imposed an additional 25% tariff on August 27, 2025, targeting India’s oil imports from Russia. This was in addition to the 25% reciprocal tariffs imposed earlier on August 7.
The move triggered a pause in trade talks, with India calling the US stance a matter of “sovereignty.”
Impact on Indian Exporters
The tariff hike has hit Indian exporters hard:
- Many US importers are cancelling orders due to higher costs.
- Exporters fear permanent loss of the US market if the deadlock continues.
- Relief measures such as currency adjustment, easier loans, and credit support are being sought from the government and RBI.
The Commerce Ministry is considering a relief package, but officials remain divided on the extent of economic impact.
Mixed Messages from the US & India
US President Donald Trump recently said he was “certain” talks with India would succeed. Hours later, PM Narendra Modi responded that both nations are “natural partners” committed to a “brighter, prosperous future.”
However, the US simultaneously pushed G7 countries to ramp up sanctions against Russian oil buyers—India being one of the top two buyers alongside China.
India’s Firm Stand: Oil & Agriculture
India has made it clear that:
- It will continue buying Russian oil, citing national energy needs (India imports ~88% of its crude).
- It will not compromise on farmers’ interests by opening markets to US genetically modified crops, a long-standing demand from Washington.
PM Modi reiterated during his Independence Day speech:
“The well-being of Indian farmers, fisherfolk and cattle keepers is our foremost priority. India will not accept any adverse policy against them.”
Outlook
While both nations maintain a “positive mindset,” differences remain on oil imports and agriculture. The upcoming talks in New Delhi will determine whether the two countries can overcome tariff disputes and move closer to a long-awaited bilateral trade deal.