There is growing uncertainty among Indians regarding the state of trade relations with the United States, triggered by contrasting statements from political leaders. In recent years, tensions escalated when President Donald Trump imposed additional tariffs on India. While Trump later appeared to soften his stance, suggesting that the U.S. was not ready to sever trade ties and calling Prime Minister Narendra Modi a good friend, recent remarks from U.S. Trade Representative Howard Lutnick have renewed doubts about the direction of negotiations.
In a recent interview, Lutnick appeared more conciliatory compared to his earlier stern warnings but indicated that progress in trade talks would depend on India halting certain crude oil purchases from Russia. When questioned about the U.S.’s key trade priorities, he stressed that although the tone has softened, the core U.S. position on these issues remains firm, leaving India cautious about the next steps in bilateral trade discussions.
On the other hand, India’s Commerce and Industry Minister Piyush Goyal described the trade talks as “encouraging.” He noted that six rounds of discussions have already taken place and, despite temporary setbacks caused by tariffs, both countries are prepared to resume negotiations. Goyal expressed optimism that comprehensive agreements could be finalized during talks scheduled for November, emphasizing that the discussions are being conducted seriously and are showing tangible progress.