Overview

• President Trump called Prime Minister Narendra Modi for his 75th birthday and stressed he is “very close to India,” striking a warmer tone even as he defended the 50% tariff tied partly to Russian oil purchases.
• A U.S. team led by chief negotiator Brendan Lynch met Indian officials in New Delhi on September 16, with both sides agreeing to step up work toward a bilateral trade agreement.
• Senior Indian officials report guarded optimism that the United States will scale back duties, while New Delhi has drafted a ₹10,000 crore package to cushion exporters if relief is delayed.
• The tariff regime comprises a 25% reciprocal duty plus a 25% penalty linked to Russian crude, covering an estimated 55% of India’s U.S.-bound goods, with textiles, pharmaceuticals, engineering items, and gems and jewellery among the hardest hit.
• Russia’s Sergei Lavrov dismissed tariff pressure as ineffective, World Economic Forum president Borge Brende called the dispute a temporary hiccup, and analyst Ian Bremmer said Modi’s public pushback on Trump’s India–Pakistan mediation claim has helped de-escalate tensions.