NEW DELHI – A scheduled visit by U.S. trade negotiators to New Delhi, set for August 25-29, has been called off, postponing discussions on a proposed bilateral trade agreement, according to a report by Indian business news outlet NDTV Profit, citing sources familiar with the matter. The cancellation delays the latest round of negotiations, which were aimed at resolving trade disputes before an August 27 deadline, when additional U.S. tariffs on Indian goods are set to take effect.
The decision follows heightened tensions between the two nations, triggered by U.S. President Donald Trump’s imposition of a 25% tariff on Indian exports earlier this month. The tariff, which will increase duties on some Indian goods to as high as 50%, was enacted in response to India’s continued imports of Russian oil. This move has escalated friction, with India’s Foreign Ministry arguing that the country is being unfairly targeted, especially since the United States and European Union also continue to import Russian goods.
According to NDTV Profit, the stalled talks dim prospects for immediate relief from the looming tariff hike. Previous negotiations, spanning five rounds, faltered over disagreements on key issues, including access to India’s agricultural and dairy markets and New Delhi’s purchases of Russian oil. The cancellation marks a setback for efforts to strengthen economic ties, which have been strained by differing priorities.
Reuters has not independently verified the NDTV Profit report. The development comes amid broader trade challenges, with the U.S. imposing higher import taxes on multiple countries, including a 15% tariff on goods from the EU, Japan, and South Korea, and 20% on imports from Taiwan, Vietnam, and Bangladesh, effective earlier this month. As the August 27 deadline approaches, the outlook for a swift resolution to the U.S.-India trade dispute remains uncertain, with both sides facing pressure to address underlying tensions.
