US-India trade talks from August 25 called off amid tariff tensions, says Reports
A 3D-printed miniature model of US President Donald Trump and the Indian flag are seen in this illustration. Photograph: (Reuters)
A planned round of US-India trade talks scheduled for August 25–29 in New Delhi has been reportedly called off, delaying negotiations on a bilateral trade pact.
A planned round of US-India trade talks scheduled for August 25–29 in New Delhi has been called off, according to a PTI report citing a source with direct knowledge. The development delays negotiations on a proposed bilateral trade agreement and dims hopes of relief from fresh US tariffs set to hit Indian exports later this month.
What happened?
The meetings were expected to bring negotiators from the United States Trade Representative (USTR) to New Delhi for discussions on reducing trade frictions. But the visit has now been scrapped, PTI reported, with the next round of talks yet to be rescheduled.
The US embassy in New Delhi said it had no additional information on the matter, while India’s Commerce Ministry did not immediately respond to a Reuters request for comment.
What did the US do?
Earlier this month, US President Donald Trump imposed an additional 25 per cent tariff on Indian goods, citing India’s continued imports of Russian oil. The new duties, coming into effect on August 27, will raise tariffs on some Indian exports to as high as 50 per cent, among the steepest levies imposed on any US trading partner.
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Washington’s move escalated trade tensions sharply, with New Delhi accusing the US of unfairly targeting it while Europe and America themselves continue to buy Russian products, as India’s Foreign Ministry has repeatedly pointed out.
Why the talks collapsed?
Trade negotiations between the two sides have already faced turbulence. According to Reuters, five previous rounds ended without progress, largely over Washington’s demands to open India’s farm and dairy markets and to curb purchases of Russian oil.
The collapse of the August round leaves businesses and policymakers bracing for a more protracted standoff. As per PTI, the delay not only pushes back hopes of a trade pact but also means Indian exporters will soon face higher tariffs without clarity on when talks might resume.
What this means?
With tariffs of up to 50 per cent looming, Indian exporters could see reduced competitiveness in the US market, especially in labour-intensive sectors like textiles, engineering goods and some agricultural products. For Washington, the stalled talks underline the difficulty of balancing its Russia containment strategy with its need to strengthen ties with India, a key partner in the Indo-Pacific.
(With inputs from the agencies)