Indian and US negotiators held a new round of negotiations over a bilateral trade deal on Monday, just weeks after President Donald Trump slapped punitive 50% tariffs on Indian exports. US Trade Representative for South Asia Brendan Lynch headed up the American delegation in New Delhi.

Following the talks, India’s Ministry of Commerce and Industry characterized the discussions as “positive and forward-looking.” Both sides agreed to intensify efforts to reach a “mutually beneficial” trade agreement as soon as possible, New Delhi added.

Although these were the first talks since the new tariffs on Indian exports took effect, Monday's negotiations mark a continuation of a process that started after Trump took office.

The new round of talks had initially been scheduled for August 25, but discussions had reached an impasse and the US delegation reportedly canceled the trip. This came immediately after Trump imposed a 25% tariff on India over the latter's purchases of Russian oil and defense goods. The levy was in addition to the 25% duty imposed earlier as part of the so-called Liberation Day tariffs, thus bringing the total to 50%. 

India and the US had agreed to finalize an interim trade deal by autumn, but talks stalled due to disagreements over US demands for greater access to India’s agricultural and dairy markets – which New Delhi considers economically and politically sensitive issues, according to Indian media reports. Prime Minister Narendra Modi in August vowed to “stand like a wall” to protect the interests of the nation’s farmers.

On Tuesday, Indian Petroleum Minister Hardeep Singh Puri told India Today that while New Delhi is confident of a good outcome of the ongoing negotiations, “an India-first approach will guide our discussions.” 

The Trump administration, meanwhile, has been increasing pressure on India to stop buying Russian oil in return for allowing the South Asian nation access to its markets. Russia has emerged as a key oil supplier to India since the escalation of the Ukraine conflict in February 2022 – accounting for nearly 40% of India’s crude imports. India has also become a major exporter of refined fuels to Europe since 2023.

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