Amid ongoing discussions regarding a trade deal between India and the United States, White House Trade Advisor Peter Navarro has stated that "India is coming to the table". This statement comes as a U.S. trade negotiator is scheduled to be in India for preliminary discussions aimed at reviving the suspended bilateral trade agreement negotiations.
Navarro's remarks, made in an interview with CNBC, follow previous criticisms of India's trade policies, particularly its high tariffs. He has, in the past, referred to India as the "Maharaja of Tariffs". Despite these criticisms, Navarro acknowledged a "conciliatory, nice, constructive tweet" from Prime Minister Modi, to which President Trump responded positively. He noted that while India is "coming to the table," the U.S. must address its high tariffs and non-tariff barriers, similar to how it deals with other countries.
The trade talks are scheduled to take place in New Delhi. Rajesh Agarwal, India's chief negotiator and special secretary in the commerce ministry, confirmed that the talks would be fast-tracked. Brendan Lynch, the U.S. Trade Representative for South Asia, is expected to visit New Delhi for these discussions.
Adding a layer of complexity to the situation, Navarro has repeatedly criticized India's procurement of Russian crude oil, alleging that it funds Russia's war efforts in Ukraine. He stated that "Indian refiners got in bed with the Russian refiners immediately after the invasion, and they're making out like bandits". He further argued that India makes money off the U.S. through unfair trade, then uses that money to buy Russian oil, which in turn helps Russia buy weapons. According to Navarro, this situation ultimately costs U.S. taxpayers more for the defense of Ukraine.
These remarks come shortly after the imposition of tariffs on Indian exports by the U.S. These tariffs include a 25% tariff that came into effect in early August as part of a global trade reset by the U.S., and an additional 25% over the Russian oil that kicked in on August 27. India's exports to the U.S. fell from $8.01 billion in July to $6.86 billion in August.
Despite the ongoing tensions and criticisms, both India and the U.S. have expressed interest in continuing trade negotiations. Prime Minister Modi welcomed Trump's social media statement that the two countries would continue to hold trade talks. While previous reports aimed for a trade pact by September, the new goal is to complete the first stage of the agreement by October or November.
However, significant reservations remain on the Indian side regarding the U.S. demand for opening up its domestic agricultural and dairy sectors. Prime Minister Modi has emphasized his commitment to protecting the interests of Indian farmers.