Credit: The White House
The United States has canceled a scheduled visit by its trade negotiators to New Delhi from August 25 to 29.
This postponement delays discussions on a proposed bilateral trade agreement between the two countries. Hopes for immediate relief from impending additional tariffs on Indian goods have been diminished as a result.
Negotiations for the trade deal are now expected to resume at a later, undetermined date. The U.S. Embassy in New Delhi stated it has no further details on the talks, which are managed by the United States Trade Representative.
India’s commerce ministry did not respond to requests for comment on the cancellation.
Earlier in August 2025, President Donald Trump signed an executive order imposing an additional 25% tariff on Indian imports, citing India’s ongoing purchases of Russian oil.
This measure, effective August 27, 2025, will increase duties on certain Indian exports to the U.S. to as high as 50%, marking one of the highest rates applied to any trading partner.
The tariffs follow five rounds of talks that stalled over U.S. demands for greater access to India’s agriculture and dairy markets, as well as calls to halt Russian oil imports.
Bilateral trade between the U.S. and India exceeded $190 billion in 2024, with the U.S. running a deficit of about $45 billion.
Key Indian exports to the U.S. include pharmaceuticals, telecommunications equipment, and precious stones. The new tariffs could affect sectors like textiles, gems, jewelry, and auto parts, potentially reducing India’s GDP growth by 0.2% to 0.8% if prolonged.
India’s foreign ministry described the tariffs as unfair, unjustified, and unreasonable, noting that the U.S. and European Union continue trading with Russia in other goods.
Officials emphasized that India’s oil imports are driven by market factors and energy security needs for its 1.4 billion population. India has no immediate plans for retaliation but is exploring options like increasing U.S. imports of natural gas and gold to address the trade deficit.
Trade tensions escalated amid U.S. concerns over India’s role as a major buyer of Russian crude, with imports reaching record levels since the Ukraine conflict began.
A Trump administration adviser stated that India acts as a global clearinghouse for Russian oil, converting it for resale. Unlike India, China, another significant importer of Russian oil, has not faced similar penalties, prompting questions about selective enforcement.
Experts view the tariffs as a negotiating tactic to pressure India into concessions on market access and geopolitical alignments.
The cancellation reflects broader strains in U.S.-India relations, despite shared strategic interests.
Ongoing talks had aimed for a deal by fall 2025, with a U.S. delegation originally set to discuss terms in New Delhi. Indian officials remain committed to a balanced agreement while protecting domestic farmers and industries.
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