US Defers Trade Visit to Delhi Amid Rising Tensions
The United States has canceled its planned visit to New Delhi from August 25–29, delaying the sixth round of trade negotiations on a proposed bilateral agreement. No new dates have been confirmed, casting uncertainty over the timeline of discussions.
Tariff Escalation Adds Pressure
The deferment comes just before additional U.S. tariffs are scheduled to take effect on August 27. These tariffs will raise import duties on some Indian goods to 50%, following earlier increased rates and existing trade tensions linked to India’s continued purchases of Russian oil.
Core Disagreements Persist
India and the U.S. remain at odds over issues such as access to India’s agricultural and dairy sectors, as well as New Delhi’s energy ties with Russia. These sticking points have prevented progress in earlier negotiation rounds and are major roadblocks in finalizing an agreement.
Economic and Strategic Impacts
The delay has raised concerns among Indian businesses and policymakers, who hoped for reprieve before the tariff hike. The growing strain in economic ties also risks broader strategic fallout, impacting supply chains, investor sentiment, and cooperation in critical sectors.
