High-level trade talks between India and the United States resumed in New Delhi on 16 September 2025, after a recent thaw in tensions and positive public statements from both President Donald Trump and Prime Minister Narendra Modi. The latest round of discussion was led by the US delegation’s chief negotiator, Assistant U.S. Trade Representative Brendan Lynch, and his Indian counterpart, Special Secretary in the Department of Commerce Rajesh Agrawal. A key outcome of the “positive and forward-looking” meeting was the mutual agreement to “intensify efforts” toward an early conclusion of a trade agreement.

Relations strained considerably after President Trump imposed new 50 per cent tariffs on Indian exports in August 2025. This move was partly a penalty for India’s continued purchases of Russian oil amidst the Ukraine conflict. The tariffs significantly impacted trade, with Indian exports to the US falling from $8.01 billion in July to $6.86 billion in August. A breakthrough in the diplomatic stalemate occurred in September 2025 after President Trump posted optimistically about the ongoing negotiations on his social media platform, Truth Social. In response, Prime Minister Modi echoed the sentiment on X, expressing confidence in the bilateral trade discussions.

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This exchange followed a period of hostile public comments from some US officials. Peter Navarro, a trade adviser in the Trump administration has made repeated critical comments about India, primarily regarding its trade relations with Russia and its high tariffs against the United States. Navarro called India the “Maharaja of Tariffs” and accused it of unfair trade practices. Navarro has also accused India of being an “oil money laundromat for the Kremlin” by importing cheap Russian oil, refining it, and then exporting fuel at a premium. He has repeatedly stated that India’s purchase of discounted Russian crude oil provides Moscow with funds for the war in Ukraine.

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