A planned visit by a US trade delegation to India, scheduled between August 25 and 29, has been cancelled and is expected to be rescheduled, according to sources familiar with the matter. The talks were part of ongoing efforts to finalize a bilateral trade agreement.

Sixth Round of Negotiations Postponed

This round would have marked the sixth phase of negotiations between the two countries. The timing was significant, as it coincided with the start of an additional 25% US tariff on Indian goods—announced by President Donald Trump over India’s continued imports of Russian oil.

Earlier tariffs of 25% had already been imposed on several Indian products, and the latest measure has further strained economic relations between the two nations.

Key Sticking Points

One of the main hurdles in the trade agreement has been US demands for greater access to India’s agriculture and dairy sectors. India has resisted, citing the impact on small and marginal farmers as well as religious and cultural sensitivities around dairy imports.

India’s Stand

Following the tariff hike, Prime Minister Narendra Modi reiterated his support for farmers, fishermen, and livestock rearers during his Independence Day address.
“India will never accept any compromise regarding its farmers and fishermen. Harmful policies against them will not be tolerated,” he said, while encouraging the use of swadeshi (Made in India) products.

Global Context

The development comes shortly after a meeting in Alaska between President Trump and Russian President Vladimir Putin on the Ukraine conflict. Observers had hoped progress there might ease the pressure on India.

While speaking to Fox News, President Trump hinted at the possibility of avoiding secondary sanctions on nations buying Russian oil but maintained he would not hesitate to impose them if required.

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