A scheduled visit by U.S. trade negotiators to New Delhi from August 25-29 has been called off, delaying the next round of discussions on a proposed bilateral trade agreement and dashing hopes for imminent relief from additional U.S. tariffs on Indian goods. Sources cited by multiple media outlets confirmed the postponement, which leaves the resumption of talks at an undetermined date.
The U.S. embassy in New Delhi declined to provide further details, stating that the discussions are under the purview of the United States Trade Representative. India’s trade ministry has yet to issue a comment on the sudden postponement.
Tensions between the two countries escalated earlier this month when U.S. President Donald Trump imposed an extra 25% tariff on Indian imports, citing India’s continued purchase of Russian oil. With the new tariff set to take effect from August 27, some Indian exports could face combined duties of up to 50%, among the highest applied by the U.S. to any trading partner.
The talks broke down after five rounds of negotiations, primarily due to disagreements over opening India’s farm and dairy sectors and U.S. demands that India halt imports of Russian oil. Indian officials have argued that their country is being unfairly targeted, noting that both the U.S. and EU continue to import goods from Russia.
The postponement is a major setback for Indian exporters, who had hoped to secure tariff relief before the new import taxes take effect. While both governments remain in contact, no new dates have been set for resuming negotiations, leaving businesses and trade stakeholders uncertain about the immediate future of bilateral trade relations.
This delay adds pressure on policymakers in New Delhi as exporters brace for the impact of steep tariffs on their goods and industries reliant on U.S. markets.