US Assistant Trade Representative for South and Central Asia, Brendan Lynch, is scheduled to arrive in India tonight, September 15, 2025, to resume talks for a Bilateral Trade Agreement (BTA) with his Indian counterpart on Tuesday. The Indian side will be represented by Rajesh Agrawal, Special Secretary in the Department of Commerce.
These discussions aim to revive negotiations that were stalled after the United States imposed a steep 50% tariff on Indian exports. The tariffs, which came into effect on August 27, 2025, consist of an initial 25% "reciprocal" tariff and an additional 25% penalty tied to India's continued imports of Russian oil. The Trump administration's measures have been widely denounced by India as "unfair, unjustified and unreasonable". India has maintained that its energy policy is based on strategic autonomy and the need to secure affordable energy for its population of 1.4 billion people.
The US move to impose tariffs has affected India's exports. It has also raised concerns about the future of strategic cooperation between the two countries, potentially unsettling mutual trust, complicating defense ties, and undermining joint regional initiatives such as the Quad. In response to the tariffs, the Indian government reduced the Goods and Services Tax (GST) on hundreds of items on September 3, 2025, to stimulate consumption and mitigate the tariffs' impact.
Prior to the imposition of tariffs, India and the US had been engaged in negotiations since March 2025, with the goal of completing the first stage of the BTA by October-November 2025. However, the US demand for greater access to India's agricultural and dairy sectors has been a sticking point. These sectors are critical to India, providing livelihood opportunities for a large segment of the population.
The United States has expressed concerns about India's trade practices, with some officials pointing to India's reluctance to import American corn. They argue that India benefits from access to the US market while restricting American goods, calling for "fair and reciprocal trade".
Despite the recent tensions, there have been positive signs from both sides. Prime Minister Narendra Modi has responded warmly to President Trump's affirmation of India-US ties, echoing the sentiment and positive assessment of the bilateral relationship.
In 2024, the total trade in goods and services between the U.S. and India was estimated at $212.3 billion, an increase of 8.3 percent from 2023. The U.S. goods trade deficit with India was $45.8 billion in 2024, a 5.9 percent increase over 2023.
Some experts suggest that for the trade deal to be successful, both sides need to consider talent mobility, not just tariffs. They argue that the mobility of skilled workers is a crucial aspect of today's service-driven economy.
