India-US Trade Delay: Talks Stalled Over Russia Oil Dispute

India-US Trade: The proposed India-US trade agreement delay has taken center stage once again as Washington abruptly called off a planned visit of its trade negotiators to New Delhi, Reuters reported, citing informed sources. The visit, which was originally scheduled between August 25 and 29, was expected to pave the way for progress in bilateral trade discussions. However, with no new date on the horizon, hopes of avoiding steep tariff hikes on Indian goods have now been dashed.

India-US Trade: A 50% Tariff Storm Looms Over Indian Exports

The development comes just days before the implementation of a punishing tariff regime set to kick in on August 27. US President Donald Trump recently announced an additional 25 per cent duty on Indian exports, raising tariff levels on select products to as high as 50 per cent. This sudden escalation places India among the most heavily penalized trade partners of the United States.

According to the report, the US embassy in New Delhi stated it had no further details to share on trade or tariff negotiations, clarifying that the matter falls under the jurisdiction of the United States Trade Representative (USTR). Meanwhile, India’s Ministry of Commerce and Industry has yet to issue an official response.

The Russia Factor and Collapsed Talks

President Trump justified the tariff hike as “punishment” for India’s continued imports of Russian crude oil, arguing that such purchases indirectly aid Russian President Vladimir Putin’s offensive in Ukraine. The move has become a flashpoint in already fragile negotiations.

Trade discussions between New Delhi and Washington had earlier seen five rounds of talks, but progress stalled over two major issues: the opening of India’s vast farm and dairy sectors to US exporters, and India’s unwillingness to fully halt its purchases of discounted Russian oil.

India, however, has pushed back strongly against Washington’s stance. In a statement, the Ministry of External Affairs argued that New Delhi is being unfairly targeted, pointing out that both the US and the European Union continue to engage in certain levels of trade with Russia even as they call for restrictions on others.

India-US Trade: Strategic and Economic Stakes Rise

The India-US trade agreement delay is more than a commercial setback. For India, the tariffs pose a direct threat to its exporters, especially in textiles, agriculture, and manufacturing sectors, which heavily rely on the US market. For Washington, the impasse underscores a widening rift with one of its key strategic partners in Asia, potentially complicating broader geopolitical cooperation.

While sources confirmed that talks will be rescheduled at a later stage, no timeline has yet been offered. With the tariff deadline approaching, Indian exporters now brace for uncertainty that could reshape trade flows between the two countries.

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