September 16, 2025

After months of tense fights and tariff clashes, a bright new hope shines over India-US trade relations. Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, arrived in India last night. His visit sets the stage to restart the stalled trade talks between the two countries. This is a big change from the earlier stormy period filled with harsh words, tariff hikes, and serious policy fights, especially about farming and dairy goods. The big hurdle was the US wanting more access to India's protected agricultural and dairy markets. India held firm, worried about culture, economy, and health risks linked to GMOs and animal feed in US dairy. The US didn’t take this lightly and hit back hard, slapping a 25% tariff on Indian exports, then adding another 25% because of India buying Russian oil — making it a whopping 50% tariff total. Political heat rose too, with President Trump and US officials openly criticizing India’s trade methods. But recently, both PM Narendra Modi and Trump started talking more gently. Trump hinted at revisiting the deal, which India welcomed warmly. Commerce Minister Piyush Goyal now says the countries are in "active dialogue." He hopes a trade deal could be sealed by November. What’s next? Brendan Lynch’s arrival means the talks formally restart. But the challenges remain tough. One hopeful sign is the US shifting its focus — it’s no longer pushing for broad dairy market access, but eyeing only premium cheeses like blue-veined and artisanal types. These cheeses serve just 2–5% of India’s market. India already imports such cheeses from places like Italy and the UK, paying 30-40% taxes. Working only with this niche might ease India’s worries about protecting local dairy farmers. GM crops are another tricky part. India usually says no to GM foods due to health and environment issues. But talks showed a possible middle path: allowing GM corn imports for ethanol, not food. This could open the door without breaking India’s GM food rules. Similarly, GM animal fodder is on the table. What about the huge US tariffs? No clear sign yet that the US will cut them. But if India offers small steps like premium cheese imports or GM corn for ethanol, maybe the US will agree to cut or pause tariffs later. Lynch must see if India’s changes are enough to convince Washington. India’s approach is careful — firm on protecting core farm and dairy sectors, but open enough for deals that don’t hurt its people or culture. As Goyal said, they want "win-win solutions" and possibly some moves that let both sides save face. This visit could be a turning point. Both India and the US seem ready to talk with respect and practicality. For America, India is a huge market and key Asian ally. For India, the US is a top trading partner, tech giant, and counterbalance to China. As talks begin again, the world watches if smart compromises and respect can turn this frosty relationship into a fruitful trade partnership. A limited but real trade deal may finally be on the horizon!

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Tags: India-us trade, Bilateral negotiations, Tariff war, Agriculture, Dairy sector, Gm crops,