India, US eye breakthrough in stalled trade talks as tariff tensions mount

A high-level US trade delegation led by Brendan Lynch, Assistant Trade Representative for South and Central Asia, is set to arrive in New Delhi for pivotal trade negotiations with Indian officials. The visit marks a renewed effort by both nations to resolve long-standing trade disputes and advance toward a bilateral agreement.

India’s chief negotiator Rajesh Agarwal confirmed the visit during a press briefing, stating that discussions would take place on September 16 to evaluate the future course of trade negotiations, Bloomberg reports.

“We will be holding talks tomorrow to see what will be the future of trade negotiations,” he told reporters, adding that both sides have been “engaged virtually” in recent weeks.

The resumption of in-person dialogue follows a recent escalation in trade tensions. US President Donald Trump—who has signaled a hardline stance on global trade—recently doubled tariffs on Indian imports to 50%, making them the highest in Asia. The move was framed as retaliation against what Washington sees as India’s persistent trade barriers and its ongoing purchases of Russian oil.

Despite the pressure, officials in both capitals have expressed optimism about the trajectory of negotiations. Indian Commerce Secretary Sunil Barthwal emphasized the constructive tone of the discussions, saying, “There is a ‘positive frame of mind’ from both sides regarding the trade issues under negotiation.” He also noted that engagement is occurring at multiple levels of government, including diplomatic and ministerial channels.

The trade talks come alongside a flurry of strategic discussions. U.S. defense officials and Boeing Co. executives are also expected in India this week to advance negotiations on a $4 billion deal for naval surveillance aircraft—part of the growing defence cooperation between the two democracies.

While India was among the first countries to initiate trade discussions with the Trump administration, five rounds of talks failed to yield a breakthrough. India’s close ties with Moscow and its reluctance to liberalize dairy and agriculture markets remain significant sticking points.

Still, Indian officials are working to project calm. Earlier this month, Commerce and Industry Minister Piyush Goyal remarked, “India and the US continue to enjoy strong ties and there is no need to panic over delays in trade talks.”

By Vafa Guliyeva