US-India Trade Talks Likely to be Deferred
August 17, 2025 10:09 AM IST

US-India Trade Talks Likely to be Deferred

New Delhi, August 17: The sixth round of trade talks between India and the United States, scheduled later this month in New Delhi, is likely to be deferred, according to officials familiar with the matter. The U.S. delegation, led by Assistant Trade Representative Brendan Lynch, was expected to arrive on August 25, but the visit has been postponed, raising uncertainty about the future of negotiations.

The talks had been planned to cover a wide range of trade issues, including tariffs, market access, and agriculture. However, discussions have faced hurdles after the U.S. administration announced steep duties on Indian exports. A 50 per cent tariff, combining a 25 per cent “reciprocal” levy and another 25 per cent linked to India’s continued imports of Russian oil, has emerged as the main point of contention.

Officials say the deferral reflects growing difficulties in narrowing differences, particularly in sensitive areas such as agriculture and dairy. India has been reluctant to open these sectors, while also maintaining its diplomatic balancing act with Russia.

The delay has also raised doubts over the possibility of concluding a Phase I trade agreement this fall, as was earlier targeted. Industry stakeholders have expressed concern that the new tariffs, set to take effect from August 27, could adversely impact exporters.

India’s commerce ministry has maintained that the country will safeguard the interests of farmers and small producers. Meanwhile, analysts suggest that both sides may need to recalibrate their positions before talks resume.

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