US-India Trade Talks Put on Hold Amid Rising Tariff Dispute
New Delhi: Negotiations between the United States and India over a key bilateral trade agreement have been postponed following the cancellation of a crucial US trade delegation’s visit to New Delhi. The talks, which were to be held from August 25 to 29, were expected to address escalating trade tensions that have sparked concern in both capitals.
Sources familiar with the matter told Indian media that while the visit is off for now, discussions are likely to be rescheduled at a future date. The US Embassy in New Delhi confirmed the postponement, with no new timeline set for the next round of discussions.
The delay comes at a sensitive moment in US-India trade relations. Earlier this month, US President Donald Trump introduced an additional 25% tariff on Indian goods, citing India’s ongoing purchases of Russian oil. This tariff is set to take effect on August 27 and will push total US tariffs on some Indian exports up to 50%—among the highest for any American trading partner. A previous 25% tariff had already been imposed earlier this year.
At the heart of the deadlock are US demands for greater access to India’s agriculture and dairy markets—something Indian officials have resisted, arguing these sectors are critical to the livelihoods of small and marginal farmers.
India’s Ministry of External Affairs has characterized the new tariffs as unfair, pointing out that both the US and EU continue to trade with Russia, even as they ask India to halt such imports.
Talks on the proposed bilateral trade agreement had made only limited progress after five rounds of negotiations. The sixth round, which the now-cancelled US visit was to have launched, was seen as pivotal ahead of the expected conclusion of a first-phase deal later this year. Despite the current pause, both sides have signaled a willingness to return to the table.
Source: NDTV Profit, Reuters, CNBC, Times of India, India Today
