A scheduled visit by a US team to India for trade negotiations, slated for August 25-29, has been cancelled. The cancellation follows heightened tensions stemming from increased tariffs. Despite this, reports suggest that the talks are likely to be rescheduled.
The primary aim of the US team’s visit was to advance discussions on a bilateral trade agreement between India and the US. The urgency of these talks has been amplified by President Donald Trump’s announcement of a new 25% tariff on Indian goods, imposed in response to India’s oil purchases from Russia, which is in addition to existing tariffs.
This round of discussions was planned as the sixth in a series of talks on the India-US trade pact, and its timing was significant as it was set around August 27, the date when the extra 25% tariff was scheduled to take effect. The talks were also intended to precede the September-October timeframe, which was the target for finalizing the agreement.
However, it is highly probable that the visit will be rescheduled, according to sources.
In his Independence Day speech on Friday, Prime Minister Narendra Modi advocated for ‘swadeshi’ (Made in India) products, conveying a strong message of support for fishermen and farmers.
Trump stated that Russia lost India as an oil client following Washington’s penalty on New Delhi’s purchases. He also indicated that similar secondary tariffs might not be implemented on countries that continue purchasing Russian crude oil.
These comments from Trump occurred as India has not confirmed any suspension of oil imports from Moscow, notwithstanding Washington’s imposition of a 25% tariff on Indian goods, in addition to an existing 25% tariff, with the new duty set to take effect on August 27.
