Despite Navarro's Jab, U.S. and India Begin New Round of Trade Negotiations

White House trade advisor Peter Navarro stated that India is "coming to the table" for negotiations, amid ongoing efforts to finalize a bilateral trade agreement between the United States and India. His remarks, made during a CNBC interview on Monday, precede day-long talks in Delhi on Tuesday led by U.S. chief negotiator Brendan Lynch. The discussions aim to address longstanding issues, including tariffs and non-tariff barriers, following the Trump administration's imposition of 50 percent import tariffs on Indian goods earlier this year.

Navarro, known for his protectionist stance, described India as the "Maharajah of tariffs," highlighting its high import duties and non-tariff barriers as obstacles to fair trade. He referenced a recent conciliatory social media post by Prime Minister Narendra Modi, who affirmed that teams from both nations are working to conclude the deal, responding to President Donald Trump's comments on removing trade barriers. Trump, in a Truth Social post last week, expressed confidence in a "successful conclusion" and anticipation for a call with Modi, his "very good friend." Modi echoed this optimism, emphasizing the limitless potential of the India-U.S. partnership.

The negotiations, which began in March 2025, have completed five rounds, with the sixth postponed last month due to the tariff escalation. India has labeled the U.S. measures as "unfair, unjustified, and unreasonable," particularly the additional 25 percent duties linked to India's purchases of discounted Russian crude oil post-Ukraine invasion in 2022. Navarro criticized these imports, claiming Indian refiners profited from "unfair trade" with the U.S., using the gains to buy Russian oil that funds weapons, ultimately burdening American taxpayers with Ukraine aid. India maintains its energy decisions are driven by national interest and market forces, especially after Western sanctions created discounted opportunities.

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Tensions extend to geopolitical alignments, with Navarro commenting on Modi's appearance alongside Russian President Vladimir Putin and Chinese leader Xi Jinping at last month's Shanghai Cooperation Organisation summit in Tianjin. He suggested Modi appeared uncomfortable, viewing China as India's "long-time existential threat."

Despite these frictions, the talks underscore the strategic importance of U.S.-India ties, with bilateral trade reaching $190 billion in 2024. A successful deal could boost sectors like agriculture, pharmaceuticals, and technology, while addressing U.S. concerns over intellectual property and market access. As Lynch's team engages in Delhi, both sides seek to balance economic interests amid global uncertainties.

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