By Manisha Sahu, September 15, 2025
New Delhi, Sept 15, 2025 — In a significant development that could shape the future of economic relations between India and the United States, American chief negotiator Brendan Lynch is set to arrive in New Delhi on Monday night. The visit comes just days after renewed bonhomie between US President Donald Trump and Indian Prime Minister Narendra Modi helped break the ice on stalled trade negotiations. Talks are scheduled to formally resume on Tuesday, according to a government official quoted by ANI.
Lynch, who serves as the Assistant US Trade Representative for South and Central Asia, will meet his Indian counterpart Rajesh Agrawal, Special Secretary in the Commerce Department. The meeting will mark the official resumption of discussions that were halted last month amid escalating tariff disputes and heated rhetoric between the two countries.
A Rocky Road to Talks
The trade discussions, which have been ongoing since March-April, hit a major roadblock in late August when Washington imposed steep tariffs on Indian goods. The US accused New Delhi of indirectly funding Russia’s war in Ukraine through its purchase of discounted Russian oil. As a result, a two-tiered penalty tariff was slapped on India — an initial 25 percent tariff in early August as part of a broader global trade reset, followed by an additional 25 percent levy on August 27 directly linked to the Russian oil purchases.
The punitive measures led to the postponement of a planned visit by the US negotiating team, originally scheduled between August 25 and 29. The delay cast doubt on the prospects of reaching even an interim trade deal this year.
From Confrontation to Conciliation
Over the past few weeks, however, both nations have worked to de-escalate tensions. While Washington had taken an aggressive stance, with US officials even making personal and cultural jibes at India, New Delhi responded with restraint. Indian officials emphasized the country’s sovereign right to pursue its own energy security while underlining its long-standing ties with Russia.
India also used the cooling-off period to recalibrate its foreign policy stance. Diplomatic overtures toward China and reiterations of its historical relationship with Moscow signaled New Delhi’s intent to pursue a balanced approach. This shift, combined with Trump’s changing rhetoric, helped pave the way for renewed engagement.
President Trump has since downplayed India’s role in the Russia-Ukraine crisis, calling the conflict “more of a Europe problem.” In a recent statement, he urged the European Union to impose tariffs on China instead, conspicuously omitting India from criticism. Meanwhile, a series of friendly exchanges between Trump and Modi on social media set the tone for reconciliation.
Key Sticking Points
Despite the thaw, the road ahead is far from smooth. The United States has long pressed India to open up its domestic agricultural and dairy markets to American products. These sectors, however, remain politically sensitive in India. Prime Minister Modi has repeatedly vowed to safeguard farmers’ interests, making concessions in this area unlikely.
“There are clear red lines that India will not cross,” said a senior commerce ministry official, speaking on condition of anonymity. “Our farmers’ livelihoods are non-negoti.
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