India–US Trade Talks Halted, American Negotiators’ Delhi Visit Called Off

The next round of trade negotiations between the US and India has been put on hold after American negotiators called off their planned visit to Delhi later this month. A US delegation was expected to visit the Indian capital on August 25.

According to reports, the talks, originally scheduled for August 25–29, have been deferred by the US side.

“This visit is likely to be rescheduled,” an official told PTI.

So far, five rounds of discussions have taken place on the proposed Bilateral Trade Agreement (BTA), launched following Prime Minister Narendra Modi’s visit to Washington in February.

However, relations between the two countries have since soured. US President Donald Trump imposed a 25% tariff on Indian goods effective August 7, later announcing an additional 25% levy in retaliation for New Delhi’s continued purchase of Russian oil.

This effectively raises tariffs on Indian exports to 50%, the highest faced by any US trade partner so far. The additional duties are set to take effect on August 27.

Talks With Putin Yield No Results

Meanwhile, high-stakes talks between President Trump and Russian President Vladimir Putin on Friday failed to deliver a ceasefire in Ukraine or relief from sanctions on Moscow.

US Treasury Secretary Scott Bessent, in an interview with Bloomberg, warned that secondary tariffs on India could rise further if the Trump–Putin talks fail to progress.

“I think everyone has been frustrated with President Putin. We expected that he would come to the table in a more fulsome way. It looks like he may be ready to negotiate. And we put secondary tariffs on the Indians for buying Russian oil. I could see, if things don’t go well, then sanctions or secondary tariffs could go up,” he said.

The US is India’s largest trading partner, with bilateral trade at $12.56 billion in FY25. Exports to the US have been consistently rising since April this year.

Between April and July, India’s exports to the US grew 21.64% to $33.53 billion, while imports from America rose 12.33% to $17.41 billion, commerce ministry data showed.

As per reports, both nations had earlier agreed to conclude the first phase of a trade pact by September–October 2025, with the broader goal of doubling trade to $500 billion by 2030.