India–US Trade Deal In Limbo As American Delegation Postpones Visit Amid Tariff Dispute: Report | India News

New Delhi: The next round of negotiations for the proposed India-United States bilateral trade agreement (BTA) is likely to be delayed, with a visiting American delegation expected to defer its scheduled trip to New Delhi later this month, according to reports.

Five rounds of talks have already taken place, with the sixth round originally planned from 25 to 29 August. However, according to media reports, an official source familiar with the matter, speaking on condition of anonymity, said, “This visit is likely to be rescheduled.”

The apparent postponement comes amid escalating trade tensions between the two nations. Washington has recently imposed additional trade penalties on India, including a 25% duty on Indian goods that came into effect on 7 August. A further 25% tariff, announced as a response to India’s continued crude oil and defence equipment purchases from Russia, is scheduled to be implemented from 27 August.

Combined, these duties will raise tariffs on Indian exports to the US to a substantial 50%.

In parallel, the US has also been pressuring India to open up politically sensitive sectors, particularly agriculture and dairy, demands that India has firmly rejected, citing the impact on small farmers and cattle rearers.

Despite the recent friction, bilateral trade between India and the US has continued to show growth.

According to data from India’s commerce ministry, exports to the United States rose by 21.64% to USD 33.53 billion during April-July 2025, while imports from the US increased by 12.33% to USD 17.41 billion. The United States was India’s largest trading partner in that period, with total bilateral trade amounting to USD 12.56 billion.

New Delhi and Washington have expressed their intent to conclude the first phase of the BTA by autumn 2025, with an ambitious goal to more than double the current USD 191 billion trade volume to USD 500 billion by 2030.

In response to US President Donald Trump’s announcement of the additional 25% tariff on Indian exports, Prime Minister Narendra Modi used his Independence Day address to champion local production and reaffirm support for farmers and traditional livelihoods.

“Modi is standing like a wall against any harmful policy related to the farmers, fishermen, and cattle-rearers of India. We will never accept any compromise regarding our farmers, their livestock rearers, and fishermen,” the Prime Minister declared.

Meanwhile, hopes of a shift in US tariff policy were sparked by high-level diplomatic developments. A key discussion between President Trump and Russian President Vladimir Putin took place in Alaska on Saturday (IST), focusing on the ongoing Ukraine conflict. Improved US–Russia relations could potentially influence the severity or implementation of the secondary sanctions impacting India.

Commenting after the summit, Trump, who had recently taken a tough stance against Moscow, remarked, “I might have to consider it (sanctions) in two or three weeks, but there’s no immediate need. If I did secondary sanctions now, that would be devastating for them.”