US-India trade talks scheduled for August 25-29 called off

A planned visit by US trade negotiators to New Delhi from August 25-29 has been called off, a source said, delaying talks on a proposed trade agreement and dashing hopes of relief from additional US tariffs on Indian goods from August 27.

The current round of negotiations for the proposed bilateral trade agreement is now likely to be deferred to another date that has yet to be decided, the source with direct knowledge of the matter said.

The US embassy in New Delhi said it has no additional information on the trade and tariff talks, which are being handled by the United States Trade Representative (USTR). India’s trade ministry did not immediately reply to a Reuters email seeking comments.

Earlier this month, US President Donald Trump imposed an additional 25% tariff on Indian goods, citing New Delhi’s continued imports of Russian oil in a move that sharply escalated tensions between the two nations.

The new import tax, which will come into effect from August 27, will raise duties on some Indian exports to as high as 50% - among the highest levied on any US trading partner.

Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India’s vast farm and dairy sectors and stopping Russian oil purchases.

India’s Foreign Ministry has said the country is being unfairly singled out for buying Russian oil while the United States and European Union continue to purchase goods from Russia.

Few days earlier, US President Donald Trump  ordered steeper tariffs on Indian goods over New Delhi’s continued purchase of Russian oil, opening a new front in his trade wars just hours before another wave of duties takes effect. An additional 25 per cent tariff on Indian goods, set to come into place in three weeks, stacks atop a separate 25 per cent duty entering into force Thursday, taking the level to 50 per cent for many products.

Trump’s order also threatens penalties on other countries who “directly or indirectly” import Russian oil, a key revenue source for Moscow’s war in Ukraine.

Exemptions remain however for goods targeted under sector-specific duties such as steel and aluminium, and categories that could be hit later, like pharmaceuticals and semiconductors.

Smartphones are among this list of exempted products for now, notably shielding Apple from a major hit as the US tech titan shifts production from China to India.

India’s foreign ministry condemned Trump’s tariff announcement Wednesday, calling the move “unfair, unjustified and unreasonable.” The ministry previously said India began importing oil from Russia as traditional supplies were diverted to Europe over the war − noting that Washington had “actively encouraged” such imports to strengthen “global energy market stability.”

Agencies