India, US to hold first trade talks in Delhi since Trump’s tariff blow over Russian oil

India and the US will resume in-person trade talks on Tuesday in New Delhi—the first since former President Donald Trump slapped penal tariffs on India over Russian oil purchases.

A high-level US trade delegation led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia, is set to meet Indian officials in what is being described as a key "course-setting" meeting on the future of trade negotiations.

“This is not an official round of negotiations but a continuation of discussions,” said Rajesh Agrawal, India’s chief trade negotiator and special secretary in the Department of Commerce. The meeting will focus strictly on trade-related issues, with no discussion on geopolitical matters, he clarified.

The talks come after Trump imposed steep tariffs—up to 50%—on Indian goods, including a 25% penal levy for continued oil trade with Russia. While formal negotiations on a proposed bilateral trade agreement (BTA) had been scheduled for August 25–29, they were put on hold following the tariff move.

Despite the setback, both sides have been holding weekly virtual meetings. However, progress has stalled. “The environment was not conducive,” a government official admitted, referring to tensions surrounding India’s stance on Russian oil.

The talks on Tuesday are seen as a thaw in strained trade relations, with Trump softening his tone last week and signaling a willingness to move forward. “I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries,” he posted on Truth Social. Prime Minister Narendra Modi responded positively, stating that both teams are working toward an early conclusion.

Commerce Secretary Sunil Barthwal said the meeting reflects a “positive frame of mind” on both sides. Future negotiations, including the next formal round of BTA talks, will depend on the outcome of this meeting.

India’s exports to the US fell to $6.86 billion in August from $8.01 billion in July, highlighting the economic urgency behind repairing trade ties.