August 25 India-US trade talks likely deferred amid Trump’s 50 % tariff squeeze: Report
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Diverging Reports Breakdown
August 25 India-US trade talks likely deferred amid Trump’s 50 % tariff squeeze: Report
The US delegation was due in New Delhi for the sixth round of talks, following five earlier sessions aimed at advancing the long-awaited trade pact. The deferment of talks comes just a day after US President Donald Trump’s high-profile summit with Russian President Vladimir Putin in Alaska on Ukraine war. Both sides have signalled intent to conclude the first phase of the BTA by autumn 2025, with an ambitious goal of more than doubling bilateral trade to USD 500 billion by 2030. India’s exports to America are recording positive growth since April this year. Despite the tariff tensions, Indian exports to the US have continued to record positive grow since April. Indian officials argue that conceding ground in these areas would endanger the livelihoods of small and marginal farmers. PM Modi has repeatedly stated his commitment to protecting Indian farmers from adverse effects of US trade demands and policies.
The postponement comes at a time when the United States has imposed steep 50 per cent tariffs on Indian exports, escalating pressure on New Delhi ahead of high-stakes trade talks.
Why have the India-US talks been delayed? A senior government official, speaking on condition of anonymity, told PTI: “This visit is likely to be rescheduled.”
The US delegation was due in New Delhi for the sixth round of talks, following five earlier sessions aimed at advancing the long-awaited trade pact.
While no official reason has been offered for the deferment, trade analysts say the development cannot be divorced from Washington’s decision to impose punitive duties on Indian goods.
Did Trump’s meeting with Putin in Alaska influence trade tensions? The deferment of talks comes just a day after US President Donald Trump’s high-profile summit with Russian President Vladimir Putin in Alaska on Ukraine war.
The Alaska summit between Donald Trump and Vladimir Putin in 2025 concluded without any concrete agreement, particularly failing to secure a ceasefire in the ongoing Ukraine conflict.
While President Putin gained a diplomatic victory by asserting Russia’s position and returning to the negotiations table, Trump adopted a stance favouring direct peace talks over incremental ceasefires, yet no definitive resolution was reached during the meeting.
Observers note that India’s energy and defence links with Russia have increasingly drawn Washington’s scrutiny — a dynamic that appears to be feeding directly into the tariff dispute.
What do Trump’s 50% tariffs mean for India? The Trump administration has announced a 50 per cent duty on Indian products entering the US market. A first tranche of 25 per cent came into force on 7 August.
A second 25 per cent penalty — explicitly linked to India’s purchase of crude oil and military equipment from Russia — is set to take effect on 27 August.
What are the sticking points in India-US negotiations? The United States is pressing for wider access to India’s agricultural and dairy markets — politically sensitive sectors that New Delhi has consistently shielded, according to reports. Indian officials argue that conceding ground in these areas would endanger the livelihoods of small and marginal farmers.
Prime Minister Narendra Modi has repeatedly stated his commitment to protecting Indian farmers from adverse effects of US trade demands and policies.
In his Independence Day speech on August 15, 2025, Modi declared:
“India will never compromise when it comes to protecting the interests of our farmers” adding, “Modi will stand like a wall against any policy that threatens their interests. India will never accept any compromise regarding its farmers, livestock rearers, and fishermen.”
PM Modi asserted that India would not give in to US demands for lower tariffs on American agricultural products like corn, soybeans, apples, almonds, ethanol, or increased access for US dairy, as these could directly harm Indian farmers and the rural economy.
How significant is the proposed trade agreement? Both sides have signalled intent to conclude the first phase of the BTA by autumn 2025, with an ambitious goal of more than doubling bilateral trade to USD 500 billion by 2030, up from the current USD 191 billion.
During April-July, the country’s exports to the US increased 21.64 per cent to USD 33.53 billion, while imports rose 12.33 per cent to USD 17.41 billion, according to commerce ministry data.
The US was the largest trading partner of India in the April-July period (USD 12.56 billion bilateral trade) 2025-26. India’s exports to America are recording positive growth since April this year.
What lies ahead for India and US? Despite the tariff tensions, Indian exports to the US have continued to record positive growth since April. Diplomats note that both sides have a strong incentive to keep the process moving, given the scale of their trade relationship.