Trade deal hits roadblock as US delegation's India visit deferred amid tariff war
PTC News Desk: The next round of negotiations on the proposed India–US bilateral trade agreement (BTA) is likely to be postponed, with an American delegation expected to defer its planned visit to New Delhi later this month, an official said.
So far, five rounds of talks have been held, and the sixth was scheduled for August 25–29. “This visit is likely to be rescheduled,” the official said, requesting anonymity.
The development comes amid rising trade friction, with Washington recently imposing additional penalties on India. A 25% tariff on Indian goods has been in effect since August 7, and another 25% levy—linked to India’s crude oil and defence purchases from Russia—is set to take effect on August 27. Combined, the duties will raise tariffs on Indian exports to the US to 50%.
The US has also been urging India to open up sensitive sectors such as agriculture and dairy, but New Delhi has firmly rejected the demand, citing risks to small farmers and livestock owners.
Despite the disputes, bilateral trade has continued to grow. According to commerce ministry data, India’s exports to the US increased 21.64% to USD 33.53 billion between April and July 2025, while imports rose 12.33% to USD 17.41 billion. The US remained India’s top trading partner during the period, with bilateral trade reaching USD 12.56 billion.
Both countries remain committed to finalising the first phase of the BTA by fall 2025 and have set a target of raising bilateral trade from USD 191 billion to USD 500 billion by 2030.
Following US President Donald Trump’s announcement of the additional 25% tariff, Prime Minister Narendra Modi, in his Independence Day address, called for a greater push towards ‘swadeshi’ (Made in India) products and expressed solidarity with farmers and fishermen.
"Modi is standing like a wall against any harmful policy related to the farmers, fishermen and cattle-rearers of India. We will never accept any compromise regarding our farmers, their livestock rearers and fishermen," PM Modi said.
- With inputs from agencies
