The US and India are stepping up talks to resolve their trade tensions, with two separate teams of officials meeting in New Delhi this week.
A US trade delegation led by Brendan Lynch, assistant trade representative for South and Central Asia, was scheduled to arrive in India on Monday night for a day of talks. US defence officials and Boeing Co. executives are also due in India this week to negotiate the sale of about $4 billion of naval surveillance aircraft.
The two sides are seeking to resolve their differences after President Donald Trump slapped India with a 50% tariff last month—the highest in Asia—to penalise the country for its trade barriers and Russian oil purchases.
New Delhi is responding to the visits with cautious optimism, indicating that more needs to be done to reset ties. The US and India had previously committed to a bilateral agreement to be completed by the fall of this year.
It’s unclear how the two sides will resolve the issue of India’s purchases of Russian oil, which Trump says is helping President Vladimir Putin finance his war in Ukraine. Trump has separately proposed Group of Seven nations should increase tariffs on China and India, the biggest buyers of Russian oil.
Trump has said he will speak with Indian Prime Minister Narendra Modi in the coming weeks. Modi’s officials have repeatedly said they will continue to purchase Russian oil as long as it is financially viable.
{{/usCountry}}Trump has said he will speak with Indian Prime Minister Narendra Modi in the coming weeks. Modi’s officials have repeatedly said they will continue to purchase Russian oil as long as it is financially viable.
{{/usCountry}}Even though India was among the first nations to start trade talks with the Trump administration, the two sides failed to reach a deal after five rounds of discussions. New Delhi’s ties with Moscow and its refusal to open dairy and agriculture markets are among the reasons the talks have stalled.