India-US Trade Talks Back on Track as US Negotiator Arrives in Delhi

With trade talks revived after a thaw in ties between Prime Minister Narendra Modi and US President Donald Trump, American chief negotiator Brendan Lynch is set to arrive in New Delhi on Monday night, September 15.

Lynch, Assistant US Trade Representative for South and Central Asia, will hold a one-day round of negotiations with India’s chief negotiator Rajesh Agrawal on Tuesday, according to multiple agencies. Agrawal confirmed the visit and said both sides intend to “fast-track” discussions but shared no further details.

Talks After Tariff Standoff
A planned US visit in late August was cancelled after Washington imposed heavy tariffs on Indian goods, citing New Delhi’s purchase of Russian oil. The measures included a 25% global tariff implemented in early August, followed by another 25% penalty specifically tied to Russian crude imports from August 27.

Tensions rose as US officials issued sharp remarks, even bringing up caste issues, while India maintained it had the sovereign right to secure its energy needs. Since then, tempers have cooled, with Trump describing the Russia-Ukraine conflict as “more of a Europe problem” and shifting focus to tariffs on China.

A brief social media exchange between Trump and Modi paved the way for the resumption of talks, which have been under negotiation since March-April.

Sticking Points Ahead
The US has pushed India to open its agricultural and dairy markets, but Modi has repeatedly assured farmers their interests will be protected. These “red lines” are expected to dominate the discussions, which originally targeted a September deal but may now stretch to October-November for a first-stage pact.

India’s exports to the US slipped to $6.86 billion in August from $8.01 billion in July. The full impact of new tariffs will be visible in September trade data.

Parallel US-China Talks
Separately, the US and China resumed their trade negotiations in Madrid on Monday. US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng are leading the discussions, set to continue until Wednesday. Key agenda items include Trump’s threat of steep tariffs on Chinese imports and Washington’s demand that TikTok be sold to a non-Chinese entity before the September 17 deadline.