US-India trade meet positive but next negotiating round after more virtual talks
Trade teams from India and the US, led by chief negotiators Brendan Lynch and Rajesh Agarwal, had “positive and forward looking” discussions on Tuesday to put the bilateral trade agreement (BTA) negotiations back on track.
But there would be more virtual talks–likely on thorny matters such as India’s red lines in agriculture and insistence on addressing penalty tariffs for buying Russian oil–before the next formal negotiating round is announced, sources said.
“… the discussions were positive and forward looking covering various aspects of the trade deal. It was decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement,” per a statement issued by Commerce Ministry.
The trade teams, which met face-to-face for the first time after the US imposed 50 per cent tariffs on most Indian goods in August 2025, decided at the end of the day-long discussions to continue talking virtually, a source tracking the matter told businessline.
“It is after the two sides are able to reach some understanding on vexed matters, by continuing the talks through virtual meetings, that the next round of negotiations will be fixed,” the source said.
The last round of negotiations between India and the US took place on July 14-17, which was largely focussed on avoiding Trump’s reciprocal tariffs on August 1, but it failed to result in a mini-deal.
India’s refusal to give in to certain US demands, including market access for sensitive agriculture and dairy products, steep duty cuts for automobile sector and import of GM variety of soybean and corn, resulted in Washington imposing 25 per cent reciprocal tariffs on the country on August 7.
On August 27, US President Donald Trump imposed another 25 per cent tariffs on India as penalty for buying Russian oil and allegedly fuelling the Ukraine war, which increased the total tariffs to 50 per cent.
“While US officials have consistently said that the penal tariffs of 25 per cent tariffs were directly linked to purchase of Russian oil, India is insistent that the total 50 per cent tariffs be addressed in the BTA negotiations. It will just not make economic sense to have trade negotiations on only 25 per cent reciprocal tariffs and keep the other 25 per cent out,” the source said.
Moreover, India’s redlines in agriculture products, including soybean and corn, continue to be a bone of contention between the two sides. Recently, US Commerce Secretary Howard Lutnick criticised and mocked India for its rigid stand on agriculture.
“Why won’t 1.4 billion people buy one bushel of US corn? Doesn’t that rub you the wrong way that they sell everything to us and they won’t buy our corn. They put tariffs on everything,” he told reporters.
Published on September 16, 2025
