US Halts India Trade Talks Amid Tariff Hike & Russian Oil Dispute

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The planned visit of U.S. trade negotiators to New Delhi, scheduled from August 25–29, has been abruptly called off, according to a reliable source. This development has postponed discussions on a proposed bilateral trade agreement and crushed hopes of relief from additional U.S. tariffs on Indian goods starting August 27.

The United States Trade Representative (USTR) has not yet provided a new timeline for the talks. The U.S. Embassy in New Delhi also confirmed that it has no further updates regarding the stalled negotiations.

Earlier this month, U.S. President Donald Trump announced a sharp 25% tariff increase on Indian goods, citing India’s ongoing imports of Russian oil. The new import tax, effective from August 27, will push duties on some Indian exports to as high as 50%—among the steepest imposed on any U.S. trading partner.

Trade negotiations between Washington and New Delhi had already collapsed after five rounds of talks, primarily due to disagreements over:

  • Opening India’s vast farm and dairy sectors
  • Halting Russian oil imports

India’s Foreign Ministry argued that the country is being unfairly targeted for purchasing Russian oil, especially when the U.S. and European Union continue trade with Russia in other sectors.

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