A U.S. delegation set to visit India on August 25 for the next round of talks on the proposed bilateral trade agreement has postponed the meeting, according to an official. Five rounds of negotiations have already been completed and the U.S. delegation was expected to visit India for the sixth round, scheduled to take place from August 25 to 29.
Delaying or rescheduling the meeting is crucial, as the U.S. has imposed a steep 50% tariff on Indian goods. The U.S. is pushing for greater market access in sensitive areas such as agriculture and dairy, which India finds difficult to accept, as they could negatively affect the livelihoods of small and marginal farmers.
Washington has cautioned that if discussions between U.S. President Donald Trump and Russian President Vladimir Putin do not yield results, the U.S. may raise tariffs on Indian goods. Such an action could drive total U.S. tariffs on Indian exports beyond 50%, a threshold that experts warn could seriously harm bilateral trade ties. The growing tariff tensions have added to the uncertainty faced by businesses in both countries.
India has affirmed that it will not compromise the interests of its farmers and livestock rearers. Both the U.S. and India have outlined intentions to finalize the initial phase of the trade agreement by September and October. The nations are working toward more than doubling the current bilateral trade from $191 billion to $500 billion by 2030.
A 25% tariff on Indian exports to the U.S. has been in effect since August 7. Meanwhile, an additional 25% duty imposed as a penalty for India’s continued purchase of crude oil and military equipment from Russia will take effect on August 27.
Between April and July, India’s exports to the U.S. rose by 21.64% to $33.53 billion, while imports grew by 12.33% to $17.41 billion, according to data from the commerce ministry.
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