4 days ago
India-US trade talks deferred? Negotiators cancel August trip to New Delhi amid rising tensions, says report
The proposed trade agreement between India and the United States has likely been delayed as a visit by US trade negotiators to New Delhi scheduled this month is called off amid rising tensions, Reuters reported citing sources.
The visit was originally scheduled between August 25 to 29; and this development has now dashed hopes of a reprieve from the 50 per cent tariffs regime set to kick in from August 27, as per the report.
The sources added that a new date for negotiations related to the bilateral trade agreement (BTA) is yet to be decided, it added.
The report noted that the US embassy in New Delhi said it has no additional information on trade or tariff talks, adding that the matter is being handled by the United States Trade Representative (USTR); while the Union Trade Ministry did not immediately respond to queries.
Earlier in August, US President Donald Trump imposed an additional 25 per cent tariff on Indian goods, claiming that it is 'punishment' for India's continued trade ties with Russia. He further stated that India buying Russian oil is contributing to Russian President Vladimir Putin's offensive in Ukraine.
The new import tax, which will come into effect from August 27, will raise duties on some Indian exports to as high as 50 per cent — lining up India among the highest penalised trading partners of the US.
After Donald Trump's hike duties, trade talks between India and the US collapsed despite five rounds of negotiations. The sticking point has been disagreement over on opening India's vast farm and dairy sectors and stopping Russian oil purchases.
In a statement, the Foreign Ministry said that India is being unfairly singled out for buying Russian oil while the US and its ally, the European Union (EU), themselves continue to purchase goods from Russia.
(With inputs from Reuters)
