US cancels India trade talks scheduled for August: Report

The proposed trade deal between India and the US is likely to be delayed as a visit by US trade negotiators to New Delhi this month has been cancelled, Reuters reported, citing sources.

The visit was originally scheduled for August 25-29. And the development has now dashed hopes of getting rid of the 50 per cent tariff regime that was due to start on August 27, according to the report.

The sources added that a new date for talks on the Bilateral Trade Agreement (BTA) is yet to be decided.

The report said that the US embassy in New Delhi said it had no additional information on trade or tariff talks, adding that the matter was being handled by the United States Trade Representative (USTR). While the Union Commerce Ministry did not immediately respond to queries.

In early August, US President Donald Trump imposed an additional 25% tariff on Indian goods, claiming it was “punishment” for India’s ongoing trade relations with Russia. He added that India was buying oil from Russia, which is participating in Russian President Vladimir Putin’s invasion of Ukraine.

The new import tax, which will take effect on August 27, will raise duties on some Indian exports to 50% – making India one of the US’s most heavily penalised trading partners.

In a statement, the Ministry of External Affairs said that India is being unfairly included in the list of buyers of Russian oil while the US and its ally the European Union (EU) themselves continue to buy goods from Russia.