New Delhi/Washington: The upcoming round of trade negotiations between India and the United States has been put on hold, delaying progress on a potential bilateral trade agreement and leaving Indian exporters bracing for higher U.S. tariffs that take effect later this month.
According to sources familiar with the matter, American trade officials were scheduled to visit New Delhi from August 25 to 29, but the trip has now been canceled. The discussions, aimed at narrowing differences on tariffs and market access, are expected to be rescheduled for a later date that has not yet been determined.
The U.S. Embassy in New Delhi declined to comment beyond saying the matter is being handled by the United States Trade Representative (USTR). India’s Commerce Ministry has also not issued a statement on the development.
The suspension of talks comes at a sensitive time. Earlier in August, President Donald Trump announced an additional 25% tariff on Indian imports, citing New Delhi’s ongoing purchases of Russian oil. The new duties, set to begin on August 27, will double tariffs on some Indian exports to nearly 50%, among the steepest rates applied to any U.S. trading partner.
Trade negotiations between the two nations have already faced multiple setbacks. Five previous rounds ended in deadlock, with Washington pressing India to open its agricultural and dairy sectors and to curb energy imports from Moscow.
New Delhi, however, has pushed back, accusing the West of double standards. Indian officials argue that while the U.S. and European Union continue limited purchases of Russian goods, India is being unfairly penalized for securing affordable energy supplies.
Diplomatic observers say the postponement signals rising strains in U.S.-India economic relations, even as both governments continue to emphasize the importance of their strategic partnership.
