After weeks of acrimony and tariff hikes, India and the United States have resumed trade talks in New Delhi, marking the first in-person negotiations since Washington imposed a steep 50% tariff on Indian goods last month.
A US delegation arrived in Delhi earlier this week, signalling a shift in approach after President Donald Trump recently indicated that his administration was willing to continue negotiations to address trade barriers. The move follows growing criticism that Washington’s tariff push may have backfired, with India refusing to concede on key issues and instead waiting out the pressure.
The talks mark a significant change from the earlier US demands for sweeping access to India’s agricultural and dairy markets. Washington has now scaled down its ambitions, focusing instead on narrower areas such as premium cheese and American-grown corn.
Trump’s trade adviser Peter Navarro had claimed India was “finally coming to the negotiating table.” However, observers point out that it is the US that has softened its stance, sending a delegation to Delhi with concessions in hand.
According to reports, Washington has abandoned efforts to enter India’s mass dairy market — a politically sensitive sector long described as New Delhi’s “red line.” Instead, it is now eyeing exports of niche cheese products such as blue-veined, artisanal and powdered varieties, which are consumed by only 2–5% of India’s population.
These products are already imported from countries such as Lithuania, Italy and the UK at duties ranging from 30–40%. A senior US official emphasised that the focus was on premium categories rather than staples like milk or yoghurt, which would directly affect small farmers.
The United States is also pushing for greater access for American corn. US Commerce Secretary Howard Lutnick, speaking ahead of the talks, pressed India to open its market, remarking that “India brags that they have 1.4 billion people. Why don’t 1.4 billion people buy one bushel of US corn?”
For New Delhi, agriculture and dairy remain highly sensitive sectors, with Prime Minister Narendra Modi reiterating his commitment to protect farmers under his broader “swadeshi” push. India has consistently avoided public confrontations, instead taking symbolic and substantive steps to strengthen domestic resolve without directly blaming the US.
The renewed discussions are expected to test how far Washington’s softened position can bridge the divide. For now, the emphasis appears to be on finding pragmatic solutions that avoid disrupting India’s rural economy while giving the US an entry point into selective premium markets.