Trade tensions escalated after the US imposed 50% tariffs on Indian exports
Negotiations resumed following a period of strained relations
Sixth round of talks delayed but now back on track
India–US Trade Negotiations Back On Track After Weeks of Diplomatic Friction
India–US trade relations have come under the spotlight since President Trump’s administration imposed 50% tariffs on Indian exports, particularly in response to India’s purchase of Russian oil. Despite these tensions, both sides have returned to the negotiating table
Indian Prime Minister Narendra Modi and US President Donald Trump
Summary
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India-US trade ties have been in limelight since Donald Trump took office. Just a few weeks after President Donald Trump imposed 50% tariffs on Indian exports over its purchase of Russia oil, the two sides are again at the negotiating table for a trade deal. The negotiations came after the long-delayed arrival of the US delegation in New Delhi.
This marks a positive shift in relations between India and the US following weeks of censure from Washington, which was later tempered by Trump’s more conciliatory approach aimed at preserving ties with India.
Five rounds of negotiations for the India-US bilateral trade agreement (BTA) have been held, and the sixth round of talks, scheduled from August 25-29, was postponed following the imposition of 50% tariffs on Indian goods by the US. India's exports have been affected following the imposition of 50% tariffs on shipments to the US.
The US delegation is being led by Brendan Lynch, the trade representative for South Asia, while India’s side is headed by senior commerce ministry official Rajesh Agarwal.
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Earlier this month, Trump told reporters that there was "nothing to worry about" in the US-India relationship. He said he will “always be friends” with Prime Minister Narendra Modi, even as his administration has pushed ahead with punitive tariffs of as much as 50% on many Indian goods.
PM Modi responded to Trump’s remarks by thanking the US president and saying he “deeply appreciates” the positive assessment of bilateral ties, calling the relationship “forward-looking” and rooted in shared strategic interests.
Even White House Trade Adviser Peter Navarro has yet again taken a dig at India, saying that the country imposes ‘Maharaja’ tariffs and accused it of running a ‘profiteering scheme’ by using discounted Russian crude oil.
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He has lambasted India for doing exactly the same thing the US is doing, which is prioritising its own sovereign priorities and acceleration of domestic business interest.
However, former US government officials, including Nikki Haley, former US ambassador to United Nations have urged caution saying that meddling relations with India could be a ‘strategic disaster’.
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