Talks between India and the United States on a much-awaited trade agreement will restart soon, sources confirmed. The fresh round of discussions comes after weeks of uncertainty following US President Donald Trump’s decision to impose a 50 per cent tariff on Indian imports.
Both sides are now preparing to meet in New Delhi to address sticking points, but big challenges remain around agriculture, dairy, and tariffs on farm goods.
India-US Trade Talks – Trump Confirms on Truth Social
President Trump confirmed the resumption of trade talks in a post on Truth Social. He said both nations “are continuing negotiations to address the Trade Barriers.”
“I look forward to speaking with my very good friend, Prime Minister (Narendra) Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!” Trump added.
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He also called India-US ties a “very special relationship” and said he and PM Modi “would always be friends.” PM Modi responded warmly, saying he “deeply appreciates and fully reciprocates” Trump’s positive words about the partnership.
India-US Trade Talks – Why Agriculture Is the Biggest Roadblock?
Despite the positive tone, the talks are stuck on agriculture. US has been pushing for access to India’s price-sensitive dairy and farm markets. But India has refused, saying it cannot allow cheaper US imports to undercut local farmers, fishermen, and cattle herders.
PM Modi has made it clear he will not compromise. In his Independence Day speech, he said: “Modi is standing like a wall against any harmful policy related to the farmers, fishermen and cattle herders… India will never accept any compromise.”
India has also turned down US demands to cut tariffs on products like soybeans, corn, apples, almonds, and ethanol. Officials argue that reducing duties would hurt agriculture-based MSMEs and threaten millions who rely on farming for survival.
Tariff Tensions Still Unresolved
The US tariffs remain another sticking point. President Trump slapped a 50 per cent duty on Indian goods, which includes a 25 per cent penalty on Russian oil and weapons purchases. India called the move “unjust, unreasonable, and unfair.”
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Trump has accused India of “feeding” Russia’s war on Ukraine, while India has pushed back, pointing to Western countries that continue to buy Russian energy without facing penalties. India has said it will keep buying Russian oil as long as it is financially viable.
India-US Trade Talks – Can India & US Reach a Deal?
Both sides are hoping to finalise at least a framework agreement by October. But officials admit that differences are not easy to settle. A senior US official recently said, “Our challenges with India… they’ve always been a pretty closed market… (and) there are a host of other kinds of geopolitical issues.”
India has also stressed that it has never offered duty concessions to any country, even to partners like Australia or Switzerland, with whom it already has trade agreements.
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Future of India-US Trade Talks
How far the US and India are prepared to concede will be put to the test in the future negotiations. Protecting farmers and MSMEs with a connection to agriculture is a top priority for India. Reducing trade obstacles continues to be a primary priority for the US.
