US-India Trade Talks Postponed Amid Rising Tariffs

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The sixth round of trade negotiations between the United States and India has been postponed as both sides face mounting trade tensions over new U.S. tariffs on Indian exports. The talks, originally scheduled for August 25–29 in New Delhi, were expected to move discussions forward on a proposed Bilateral Trade Agreement (BTA).

According to officials, a U.S. delegation was set to travel to India for the talks but is now likely to reschedule the visit. This delay comes as Washington imposes additional duties on Indian products, complicating the atmosphere for negotiations.

Since August 7, a 25 percent tariff has been applied to Indian goods entering the U.S. An additional 25 percent penalty, linked to India’s purchases of crude oil and military equipment from Russia, is due to take effect on August 27. Together, these measures will raise total tariffs on several categories of Indian exports to 50 percent.

The U.S. has been pushing for greater market access in sensitive sectors such as agriculture and dairy, areas where India has resisted concessions. New Delhi maintains that allowing broader access could harm small farmers and rural communities. Indian officials have stressed that protecting the livelihoods of farmers and cattle rearers remains a priority, even as the country seeks to expand trade with the U.S.

Despite the current tensions, both nations have reaffirmed their commitment to concluding the first phase of the BTA by the fall of 2025. The long-term goal is to expand bilateral trade from its current $191 billion to $500 billion by 2030.

Recent figures from India’s commerce ministry show that trade between the two countries remains robust. Between April and July, India’s exports to the U.S. grew by 21.64 percent to $33.53 billion, while imports from the U.S. rose 12.33 percent to $17.41 billion. The U.S. was India’s largest trading partner during the April–July 2025-26 period, with bilateral trade valued at $12.56 billion.

Trade experts note that while the postponement of talks may slow momentum, both sides have strong incentives to continue negotiations. For Washington, securing wider access to India’s growing consumer market is a priority. For New Delhi, diversifying trade and sustaining export growth remain central to its economic strategy.

The coming months will be critical as officials work to bridge differences and keep the negotiations on track, despite the pressure of escalating tariffs.