August 25 India-US trade talks likely deferred amid Trump's 50 % tariff squeeze: Report

Mint

a day ago

The next round of India-US negotiations on the proposed bilateral trade agreement (BTA), scheduled for 25–29 August, is expected to be deferred, officials familiar with the matter indicated on Saturday. The postponement comes at a time when the United States has imposed steep new tariffs on Indian exports, escalating pressure on New Delhi ahead of high-stakes trade talks.
A senior government official, speaking on condition of anonymity, said: 'This visit is likely to be rescheduled.' The US delegation was due in New Delhi for the sixth round of talks, following five earlier sessions aimed at advancing the long-awaited trade pact.
While no official reason has been offered for the deferment, trade analysts say the development cannot be divorced from Washington's decision to impose punitive duties on Indian goods.
The deferment of talks comes just days after US President Donald Trump's high-profile summit with Russian President Vladimir Putin in Alaska. During the meeting, Trump pushed for Ukraine to accept a peace deal while signalling a tougher economic line against countries continuing trade with Moscow.
Observers note that India's energy and defence links with Russia have increasingly drawn Washington's scrutiny — a dynamic that appears to be feeding directly into the tariff dispute.
The Trump administration has announced a 50 per cent duty on Indian products entering the US market. A first tranche of 25 per cent came into force on 7 August. A second 25 per cent penalty — explicitly linked to India's purchase of crude oil and military equipment from Russia — is set to take effect on 27 August.
The timing of the tariff escalation, coinciding with the planned talks, has amplified concerns that Washington is using the measures as leverage in negotiations.
The United States is pressing for wider access to India's agricultural and dairy markets — politically sensitive sectors that New Delhi has consistently shielded. Indian officials argue that conceding ground in these areas would endanger the livelihoods of small and marginal farmers.
India has reiterated that it will not compromise on the interests of farmers and cattle rearers, even as it seeks to deepen trade ties with Washington.
Both sides have signalled intent to conclude the first phase of the BTA by autumn 2025, with an ambitious goal of more than doubling bilateral trade to USD 500 billion by 2030, up from the current USD 191 billion.
The US remains India's largest trading partner. Between April and July, India's exports to the US rose 21.64 per cent to USD 33.53 billion, while imports grew 12.33 per cent to USD 17.41 billion, according to official commerce ministry data.
Despite the tariff tensions, Indian exports to the US have continued to record positive growth since April. Diplomats note that both sides have a strong incentive to keep the process moving, given the scale of their trade relationship.
However, with Washington hardening its stance and New Delhi unwilling to yield on agriculture and dairy, the rescheduling of talks underscores the fragility of the negotiations. Whether the proposed BTA can advance on schedule this autumn now depends on how the two governments reconcile tariffs, trade access, and political sensitivities in the coming weeks.