US-India trade relations show signs of improvement as negotiations resume this week, following months of escalating tensions over tariffs and trade practices.
White House trade adviser Peter Navarro indicated that India is now "coming to the table" for discussions, with talks scheduled for Tuesday in New Delhi. US trade representative Brendan Lynch will conduct a one-day visit to facilitate these "fast-track" negotiations, according to India's chief negotiator Rajesh Agarwal.
The talks follow a period of significant strain after President Trump imposed punitive tariffs on Indian exports, causing shipments to plummet to nine-month lows in August. Washington doubled tariffs to 50% last month, primarily citing India's continued purchases of Russian crude oil despite the Ukraine conflict.
Navarro has been particularly critical of India's trade policies, labeling the country the "Maharajah of tariffs" and claiming it maintains the highest tariffs against US goods among major economies. He also criticised India's increased Russian oil imports since the Ukraine invasion, arguing it constitutes "profiteering" that ultimately costs American taxpayers.
Despite these tensions, diplomatic relations appear to be warming. Trump recently praised Prime Minister Modi as a "great Prime Minister," expressing lasting friendship. Modi reciprocated these sentiments, suggesting both leaders are seeking to reset their trade relationship through constructive dialogue rather than continued escalation.
