US-India trade talks put on hold as August visit canceled

By Al Mayadeen English
Source: Agencies
16 Aug 2025 22:08
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The postponement of the US delegation's visit has left the next round of trade talks with India in limbo.

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A family on a motorcycle watches Indian and US flags put up ahead of the US Vice President JD Vance visit in Jaipur, India, Monday, April 21, 2025 (AP Photo/Manish Swarup)

A highly anticipated delegation of US trade negotiators set to travel to New Delhi between August 25 and 29, 2025, will no longer make the trip, according to sources cited by NDTV. The delay has thrown into uncertainty the next round of negotiations over a bilateral trade deal, with no new timeline established.

Officials from both capitals remain in contact, but a spokesperson confirmed that the sixth round of talks, expected to be led by Assistant US Trade Representative Brendan Lynch, has been put on indefinite hold. "No new date is decided yet," the unnamed official said.

Tariff Standoff

The suspension comes as trade frictions escalate sharply. Washington is preparing to enforce a 50% tariff on Indian exports starting August 27, split into an initial 25% duty and an additional 25% penalty linked to India’s continued imports of Russian oil. President Trump has made it clear that no forward movement on trade will occur unless the tariff dispute is addressed, effectively stalling momentum toward the Bilateral Trade Agreement (BTA).

Beyond tariffs, long-standing disagreements over agricultural and dairy market access remain a sticking point, with New Delhi unwilling to compromise protections for its farming sector. At the same time, Washington has raised concerns that India’s oil purchases from Moscow undermine Western sanctions, injecting a geopolitical dimension into the standoff.

Strategic Strain

The friction has also spilled into the defense sphere, with reports suggesting that India slowed discussions on major US arms acquisitions, although New Delhi has officially denied these claims. Analysts caution that the impasse could weaken broader US-India strategic cooperation, including within the Quad grouping and other Indo-Pacific security arrangements, making this one of the most serious tests in bilateral ties in decades.

Still, both sides insist they remain committed to pursuing a deal. US Treasury Secretary Scott Bessent recently described negotiations with India and other partners as "incomplete," while expressing some level of optimism, that the Trump administration still hopes to finalize agreements by late October, though he admitted the timeline was "aspirational but achievable."

At the same time, India is pursuing parallel trade initiatives with partners such as the UK, EU, EFTA, and ASEAN. The future of its trade negotiations with Washington, however, remains uncertain.