India and the United States will resume in-person trade talks on Tuesday in New Delhi, the first since President Donald Trump imposed punitive 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 scheduled to meet with Indian officials in what is described as a critical "course-setting" meeting on the future of trade negotiations.

Key Highlights

• India-US trade talks resume in Delhi despite 50% tariffs; U.S. envoy Lynch arrives for one-day mission.
• India’s exports to U.S. dropped from $8.01B in July to $6.86B in August following Trump’s tariff move.

"This is not an official round of negotiations, but rather a continuation of discussions," said Rajesh Agrawal, India's chief trade negotiator and special secretary to the Department of Commerce. He clarified that the meeting will focus solely on trade issues, with no discussion of geopolitics.

The talks come after Trump imposed steep tariffs of up to 50% on Indian goods, as well as a 25% penalty for continuing oil trade with Russia. While formal negotiations on a proposed bilateral trade agreement (BTA) were scheduled for August 25-29, they were halted following the tariff move.

Despite the setback, both sides have been meeting virtually on a weekly basis. However, advancement has stalled. "The environment was not conducive," a government official admitted, referring to the tensions surrounding India's stance toward Russian oil.

The talks on Tuesday are viewed as a thaw in strained trade relations, with Trump softening his tone last week and signaling a willingness to proceed. "I am confident that there will be no difficulty in reaching a successful conclusion for both of our great countries," he wrote on Truth Social. Prime Minister Narendra Modi responded positively, saying that both teams are working to reach an early conclusion.

Also Read: Trump Urges EU to Impose 100% Tariffs on India & China

Commerce Secretary Sunil Barthwal stated that the meeting reflects a "positive frame of mind" on both sides. This meeting's outcome will determine future negotiations, including the next formal round of BTA talks.

India's exports to the United States fell to $6.86 billion in August from $8.01 billion in July, emphasizing the economic importance of repairing trade ties.