United States has cancelled a planned round of trade talks with India that was scheduled to take place in New Delhi from 25 to 29 August.
According to NDTV, the sixth round of negotiations between the two countries was expected to focus on advancing a bilateral trade agreement, but Washington’s trade delegation has now withdrawn from the visit. While the talks are “likely to be rescheduled,” no new date has been shared with New Delhi so far.
The decision comes at a time of growing strain in economic relations. US President Donald Trump has already announced a new 25 per cent tariff on Indian goods, citing India’s continued imports of Russian oil. The additional duty, which takes effect on 27 August, will push overall tariffs on several product categories to as high as 50 per cent.
Associated Press recently reported that India has rejected the measure as “unfortunate” and defended its oil purchases as a matter of necessity. Prime Minister Narendra Modi has meanwhile pledged to protect farmers, fishermen and dairy producers from the fallout of the US tariffs while urging greater self-reliance in domestic industries.
The suspension of talks so close to the tariff deadline has added uncertainty to the timeline for a trade agreement. With exporters already reporting order cancellations in sectors such as electronics. While both sides holding firm to their positions, observers say the prospects of an early breakthrough remain slim.