In the news of Epoch Times on September 15, 2025, following President Trump’s imposition of punitive tariffs on India for purchasing Russian oil, the United States and India will restart trade negotiations in New Delhi on Tuesday, September 16, signaling a positive turn in the bilateral relationship that has been in a downturn in recent months.
Chief negotiator Rajesh Agarwal from the Indian Ministry of Commerce stated that Brendan Lynch, the U.S. Regional Trade Representative for South Asia, will embark on a one-day visit as part of bilateral negotiations. The specific details of the discussions have not been disclosed.
Starting from August 27, the Trump administration imposed a 25% tariff on Indian goods, raising the total tariff rate to 50%, as a sanction against India’s import of Russian oil. A planned late August visit from the U.S. to India was canceled due to disagreements in the agricultural and dairy markets.
According to the latest data from the Indian Ministry of Trade, India’s exports to the U.S. dropped from $8.01 billion in July to $6.86 billion in August, with total exports hitting a nine-month low of $35.1 billion. Exporters indicate that the impact of the tariffs will further manifest in September.
Despite unresolved disputes, both Trump and Indian Prime Minister Modi have recently expressed goodwill. Trump posted on “Truth Social” that he looks forward to speaking with his “dear friend Prime Minister Modi,” believing that both sides “will successfully reach an agreement.” Modi, on the other hand, stated that the negotiations will unleash the “limitless potential of the Indo-U.S. partnership.”
However, Reuters cited European diplomatic sources pointing out that Trump recently requested the EU to impose 100% punitive tariffs on China and India to exert more pressure on Russia. Meanwhile, Modi visited China last month and stood on the same stage as the CCP leader and the Russian president at the Shanghai Cooperation Organization (SCO) summit, raising concerns from the U.S.
Trump criticized the trade relationship with India as a “complete one-sided disaster” and mentioned that India’s proposal to reduce tariffs was “too late,” but later softened his tone, calling the bilateral relationship “special” and saying there is “nothing to worry about.”
The continued opening of agricultural and livestock markets remains the biggest obstacle in the negotiations. India insists on protecting the interests of millions of farmers. Sergio Gor, the nominee for U.S. Ambassador to India, stated that the two sides are “not too far from an agreement” and could resolve their differences in the coming weeks.
The market has also responded positively to this. The “Indian Economic Times” pointed out that investors are optimistic about progress in the agreement, leading to widespread rises in stocks across related industries, with companies like Gokaldas Exports and KPR Mill witnessing a single-day increase of over 7% in their stock prices.
Indian Minister of Commerce, Piyush Goyal, stated that substantive dialogues have been initiated by both sides, aiming to reach an initial agreement by November to pave the way for renewed cooperation.