On August 16, 2025, NDTV Profit reported that a scheduled visit by U.S. trade negotiators to New Delhi from August 25 to 29 had been cancelled. This cancellation will delay discussions on a proposed bilateral trade agreement, according to sources familiar with the situation. The visit was significant for the sixth round of negotiations and is expected to be rescheduled, although no new timeline has been established yet.
The cancellation comes after US President Donald Trump imposed a 25% tariff on Indian goods in July, with an additional 25% set to take effect on August 27, specifically targeting India’s imports of Russian oil. India has criticised these tariffs as “unfair and unreasonable,” accusing the US of double standards, since other countries also import Russian commodities. As a result, the timeline for the first phase of the trade deal, originally expected in September–October, now seems uncertain.
US cancels India trade talks scheduled for August, NDTV Profit says https://t.co/Kfx6eByBAk https://t.co/Kfx6eByBAk
— Reuters (@Reuters) August 16, 2025
Indian officials highlighted the US as a vital trade partner and emphasised the importance of ongoing engagement through ministerial, diplomatic, and industry channels. On August 14, they expressed optimism for progress based on mutual respect, despite existing tariff disputes.
The delay jeopardizes the trade objectives between India and the United States, with bilateral trade currently at $191 billion and a target of $500 billion by 2030. India’s strong commitment to protecting its farmers, along with its purchases of Russian oil, complicates the negotiations. This cancellation could strain diplomatic relations, affecting tariff relief and regional trade dynamics.
Read: Trump’s 50% Tariffs on India Threaten US-India Relations
The cancellation of US-India trade talks amid tariff disputes jeopardises economic and diplomatic ties, affecting global trade dynamics.