US cancels India trade talks amid tariff tensions

(Reuters): A planned visit by US trade negotiators to New Delhi from August 25-29 has been canceled, delaying talks on a proposed bilateral trade agreement, Indian business and financial news network NDTV Profit reported on Saturday, citing people familiar with the matter.

The current round of negotiations for the proposed bilateral trade agreement is now likely to be deferred to another date, the report said, dashing hopes of some relief before the Aug. 27 deadline for the additional tariff on Indian goods kicks in.

Reuters could not immediately verify the report.

Earlier this month, US President Donald Trump imposed an additional 25% tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations.

The new import tax, which will come into effect from Aug 27, will raise duties on some Indian exports to as high as 50% - among the highest levied on any US trading partner.

Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases.

India's Foreign Ministry has said the country is being unfairly singled out for buying Russian oil while the United States and European Union continue to purchase goods from Russia.

Russia accounted for nearly 36 percent of India's total crude oil imports in 2024, snapping up approximately 1.8 million barrels of cut-price Russian crude per day.

Buying Russian oil saved India billions of dollars on import costs, keeping domestic fuel prices relatively stable.