Amidst signs of easing trade tensions, the United States and India are set to resume trade negotiations, with the US chief negotiator expected to arrive in India tonight. Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, will meet with his Indian counterpart, Rajesh Agrawal, Special Secretary in the Department of Commerce, on Tuesday.

These discussions follow recent social media exchanges between Prime Minister Narendra Modi and President Donald Trump, suggesting a potential thaw in relations that had been strained by US tariffs on Indian imports, particularly concerning Russian oil purchases. The negotiations, which were originally scheduled for August 25, were postponed after the U.S. imposed steep tariffs on India last month.

The two nations have been engaged in negotiations for several months, aiming to seal an interim trade deal. Talks on a broader Bilateral Trade Agreement (BTA) were launched in March with the goal of completing the first stage of the agreement by October–November 2025. The BTA aims to more than double bilateral trade to $500 billion by 2030, from the current $191 billion.

The negotiations are set against the backdrop of escalating tariffs imposed by the US. Initially, President Trump announced 25% tariffs on Indian goods, despite earlier expectations of an interim trade deal that could have averted higher duties. Within days, the tariffs were doubled to 50%, citing India's continued imports of Russian oil. These measures came into effect on August 27. Trump has consistently pursued a policy of reciprocal tariffs, extending duties on multiple countries with which the US runs a trade deficit. Since beginning his second term, he has reaffirmed that his administration will match tariffs imposed by other nations, including India, to “ensure fair trade”.

Despite the strains, leaders from both sides have struck a positive tone. Earlier this week, PM Modi welcomed President Trump's remarks on bilateral relations, saying he “deeply appreciates and fully reciprocates” the US President's sentiments and outlook. In response to President Trump's post, PM Modi stated that both countries "will work together to secure a brighter, more prosperous future".

However, Indian officials have raised concerns over Washington's demand to open up the agricultural and dairy sectors, as these are sensitive areas for the country, providing livelihoods to a major portion of the population. PM Modi has said he would protect farmers' interests. These concerns will likely be a focal point in the upcoming discussions.

White House trade advisor Peter Navarro said that India is "coming to the table," ahead of trade talks between New Delhi and Washington on Tuesday. Rajesh Agarwal, India's chief negotiator and special secretary in the commerce ministry, confirmed that India and the United States will 'fast-track' trade talks.