“Before we conclude any trade agreement, we needed to bring the temperature down between the two countries,” he said, welcoming the social media exchanges as a step in the right direction.
Speaking to CNBC-TV18 after President Donald Trump and Prime Minister Narendra Modi exchanged conciliatory messages on social media, Aghi underlined that the road to a breakthrough is still uncertain.
“We are not out of the woods, but at least we have a sentiment which is moving in the right direction,” he said, noting that optimism alone would not resolve the thorny issue of punitive tariffs.
Aghi revealed that USISPF has formally urged the White House to reconsider the secondary tariff imposed on India’s Russian oil purchases. “We have requested President Trump that the secondary tariff of 25% is unjust,” he said, stressing that removing the levy is critical to progress.
Read Here | India-US officials likely to have an exchange of trade delegations soon: Sources
He argued that both sides must find an “off-ramp” that allows Trump to roll back the tariff without political cost, while urging New Delhi to remain measured. “India has to be restrained in making comments about the secondary tariff,” Aghi added.
Kanwal Sibal, former foreign secretary, cautioned that optimism should be tempered with realism. “The thorniest point is the 25% penalty tariffs that Trump has imposed on India for buying Russian oil and Russian defence equipment,” he said, arguing that without relief on this front, negotiations would take place under pressure.
Meera Shankar, former Indian ambassador to the US, said the softened rhetoric from Washington is a welcome change but stressed the need for firm negotiations.
“It opens a door. India has also said it’s willing to…re-engage in trade talks with the US. But…this is not going to be easy, and India will have to continue to be hard-headed about the negotiations where our vital interests are concerned.”
For the entire discussion, watch the accompanying video
Also Read | India must press US to drop 25% duty before trade talks, says former commerce secretary
