India, U.S. to Resume Trade Talks After Tariff Hike

NEW DELHI — India and the United States will hold trade talks on Tuesday, raising hopes for a breakthrough weeks after President Donald Trump imposed a 25% punitive tariff on Indian goods for the country’s continued purchase of Russian oil, Indian officials said.

The U.S. trade representative for South Asia, Brendan Lynch, will visit New Delhi for one day of bilateral trade negotiations, said Indian chief negotiator Rajesh Agarwal. The talks follow Trump’s more conciliatory tone last week, when he expressed optimism about finalizing a trade deal.

The additional 25% tariff, effective Aug. 27, 2025, doubled the total U.S. tariffs on Indian goods to 50% as part of Washington’s efforts to pressure Moscow over its invasion of Ukraine. India’s exports to the U.S. dropped to $6.86 billion in August from $8.01 billion in July, according to India’s trade ministry. Total goods exports fell to a nine-month low of $35.10 billion in August from $37.24 billion in July, while the trade deficit narrowed to $26.49 billion.

Exporters said the full impact of the tariffs will be felt in September. The tensions coincide with India’s warming ties with China, marked by Prime Minister Narendra Modi’s visit to Beijing last month for a summit hosted by Chinese President Xi Jinping, his first in seven years. Modi was also seen holding hands with Russian President Vladimir Putin at the event.

A previous U.S. trade delegation visit to New Delhi, planned for Aug. 25-29, was canceled after talks stalled over India’s resistance to opening its agricultural and dairy sectors. However, Sergio Gor, Trump’s nominee for U.S. ambassador to India, said last week that the two sides were “not that far apart” on tariffs and predicted resolution within weeks.