US-India Trade Negotiations on Hold Amid Rising Tariffs

Sun 17th Aug, 2025

The United States has reportedly suspended its trade discussions with India that were set to occur in New Delhi from August 25 to 29. This development marks a significant setback for Indian businesses that are facing increasing tariffs on their exports to the US.

According to sources cited by The Indian Express, negotiations that began in February have reached an impasse, with the next round of talks postponed to an unspecified future date. This is particularly concerning for Indian traders, who are already subject to a 25% tariff on certain goods, with an additional 25% scheduled to take effect on August 27, raising the total tariff to 50%--the highest imposed by the US on any country.

The abrupt halt in negotiations comes in the wake of escalating tensions between the two nations, particularly after US President Donald Trump announced the new punitive tariffs in response to India's continued import of Russian oil. The discussions have previously centered around contentious issues such as the opening of India's extensive agricultural and dairy sectors to US imports and halting the purchase of Russian oil.

As negotiations stalled, the impact on Indian manufacturers becomes increasingly dire. Business owners had hoped for relief from the tariffs before the new rates were implemented. The situation is compounded by the fact that the US has positioned itself as a critical trade partner for India, making the outcome of these negotiations all the more crucial.

This latest development highlights the complexities of international trade relationships and the challenges posed by geopolitical factors. The future of India-US trade relations remains uncertain as both countries navigate their respective domestic and international priorities.


More Quick Read Articles »