India, US push trade talks amid tariff disputes and oil standoff

India and the United States have resumed high-stakes trade negotiations, but progress remains tied to Washington’s tariff rollback and New Delhi’s defiance on Russian oil imports.

During commerce minister Piyush Goyal’s visit to New York (Sept 22–24), both sides discussed the “possible contours” of a trade deal and agreed to continue engagements for an early conclusion, according to an official statement. Goyal met US Trade Representative Jamieson Greer and ambassador-designate Sergio Gor, alongside senior commerce officials.

Sources said the US may scale back its August tariff hike—cutting the first 25% tranche to around 15%—but a final agreement hinges on broader reductions. Talks also face strain over India’s decision to continue Russian oil imports and expand co-production of Russian Su-57 fighter jets, both declared non-negotiable by New Delhi.

“The Trump administration will have to accept India’s defense and energy stance,” former WTO envoy Jayant Das Gupta said. He added that while pharma exports to the US have surged 20% to cross $10 billion this year, Trump is expected to invoke a national security exception on some “heavy drug” imports, potentially hitting India’s trade gains.

US officials insist a comprehensive resolution is needed to satisfy President Trump, particularly on oil. “The oil issue is the thorniest. When that’s resolved, the others won’t be too tough,” a US negotiator said.

Trade economist Biswajit Dhar noted that both sides see value in a deal but warned that Washington’s push for greater market access—especially in agriculture and dairy—remains politically sensitive in India.

Officials said the date and venue for the next negotiation round are yet to be finalized, but both countries are aiming to meet a fall deadline for the first tranche of a bilateral trade agreement.Read about our editorial guidelines and ethics policy