US cancels India trade talks scheduled for August amid tariff dispute
The United States has called off a planned round of trade negotiations with India that was set to take place in New Delhi from August 25–29, according to a report by NDTV Profit citing sources familiar with the matter. The cancellation marks another setback in efforts to finalize a long-discussed bilateral trade agreement.
With the talks now postponed indefinitely, expectations of progress ahead of Washington’s looming tariff deadline have faded. On August 27, a fresh round of US duties—announced earlier this month by President Donald Trump—will come into force, raising tariffs on several Indian exports by as much as 25%. For certain goods, overall duties could rise to nearly 50%, placing India among the most heavily penalized US trade partners.
The White House justified the move by pointing to India’s continued imports of Russian crude oil, despite repeated calls from Washington to scale back ties with Moscow following the Ukraine war. Analysts say the decision underscores growing friction between two countries that, until recently, have sought to strengthen strategic and economic cooperation as part of counterbalancing China’s influence in Asia.
Negotiations on a trade deal had already stalled after five rounds of talks. Key sticking points include US demands for greater access to India’s protected farm and dairy markets, as well as Washington’s insistence that New Delhi reduce energy trade with Russia. Indian officials argue that New Delhi is being unfairly targeted, noting that both the United States and European Union continue to import Russian goods in other sectors.
The cancellation also risks further straining relations at a time when both sides had hoped to expand defense cooperation and high-tech trade. Indian exporters—particularly in textiles, steel, and pharmaceuticals—are expected to be hit hardest by the tariffs, raising concerns within New Delhi’s business community about job losses and declining competitiveness.
Despite the setback, trade experts believe the two nations may eventually return to the negotiating table, given the scale of their economic ties. The US is one of India’s largest trading partners, with bilateral trade exceeding $190 billion last year, while India is a key market for US technology, agricultural products, and defense sales.
.png "Advertisement")
