India-US trade talks set for revival as Piyush Goyal heads to Washington amid tariff strain

Trade negotiations between India and the United States are poised for a crucial restart next week, with Commerce Minister Piyush Goyal leading a high-level delegation to Washington. The visit comes at a time when Indian exporters are facing mounting pressure from steep US tariffs, triggering cancelled orders across labour-intensive sectors such as textiles, footwear, and fisheries.

The renewed engagement follows a round of discussions in New Delhi earlier this week, when Assistant US Trade Representative (USTR) for South and Central Asia Brendan Lynch met senior Indian officials.

The talks were described by the Ministry of External Affairs as “positive and forward looking,” with both sides agreeing to “intensify efforts” toward a mutually beneficial agreement.

Diplomatic heft will also be added when External Affairs Minister S Jaishankar meets US Secretary of State Marco Rubio on the sidelines of the UN General Assembly in New York. Jaishankar’s travel schedule is being finalized, officials said.

The Washington round marks a resumption of trade negotiations that had stalled after US President Donald Trump last month doubled tariffs on Indian goods to 50%, citing New Delhi’s continued purchases of Russian oil. Trump’s escalation had raised alarm in India’s export sectors, where companies are reporting rising losses and declining orders.

Still, signs of a thaw have emerged. On September 16, as trade talks were underway in New Delhi, Trump telephoned Prime Minister Narendra Modi to extend birthday greetings, with Modi reaffirming his “full commitment” to elevating the Indo-US partnership.

Days later, Trump signaled optimism, saying negotiations were “continuing to address trade barriers” and expressing confidence in their success. Modi, in turn, called the two countries “natural partners” working together for a “brighter, more prosperous future.”

Chief Economic Adviser V Anantha Nageswaran has indicated that the additional US tariffs on India linked to Russian oil purchases will not extend beyond November 30, a timeline that could create space for resolution.

Even as talks progress, Washington has urged G7 partners to step up pressure on nations importing Russian oil to tighten the squeeze on Moscow. India and China remain among the largest buyers, underscoring the geopolitical weight behind the negotiations now moving back to Washington.