India, US resume trade talks amid tensions over 50% tariffs

India and the US on Tuesday resumed trade talks amid tensions over 50% tariffs on Indian goods by the Trump administration, partly for purchasing Russian oil as the war in Ukraine continues.

TV footage showed US assistant trade representative Brendan Lynch arriving at India’s Commerce and Industry Ministry in New Delhi for talks with his Indian counterpart Rajesh Agarwal.

Lynch reached the capital on Monday night to discuss India-US trade deal. This is the first in-person engagement between the two nations since President Donald Trump imposed the punitive measures in August.

Tensions escalated when the US first imposed a 25% tariff on Indian imports, later doubling it to 50% in response to India's continued imports of Russian oil.

Ahead of Tuesday’s talks, White House trade adviser Peter Navarro said India was the “maharaja of tariffs” but was now “coming to the table.”

“Indian refiners were in bed with Russian refiners immediately after the invasion. They make money off us via unfair trade and many workers get screwed. They use that money to buy Russian oil, and Russians use that to buy weapons,” he told CNBC International on Monday.

Trump last week said Washington and New Delhi are continuing negotiations to address trade barriers between the two countries.

Reacting to Trump’s post, Indian Prime Minister Narendra Modi, who described India and the US as “close friends and natural partners,” said he is “confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership.”

India had earlier termed the US surcharge “unfair, unjustified and unreasonable.”

US goods and services trade with India totaled an estimated $212.3 billion in 2024, according to the US administration.