US trade team defers India visit on August 25 days before 50% tariff deadline hits

The scheduled visit of US trade negotiators to New Delhi for the sixth round of Bilateral Trade Agreement (BTA) talks has been called off, a senior official confirmed on Saturday. The cancellation signals a delay in tariff relief and clouds the fall timeline for finalising the first phase of the agreement.

The US delegation, led by Assistant Trade Representative Brendan Lynch, was expected to be in India from August 25 to 30. The round was aimed at easing tensions after US President Donald Trump raised additional tariffs on Indian goods to 50%, doubling the existing rates.

The deferral means the first phase of the BTA — originally expected to be concluded by September-October — may now miss its target. The delay comes just ahead of the August 27 deadline, when the US plans to impose a secondary 25% tariff on Indian goods, in addition to the 25% duty that took effect from August 7.

“This visit is likely to be rescheduled,” the official said, requesting anonymity.

While five rounds of negotiations have been completed, the sixth round was considered critical to align both sides on sensitive issues. The US continues to seek deeper market access in India’s agri and dairy sectors, which New Delhi has resisted, citing the livelihood concerns of small and marginal farmers.

Prime Minister Narendra Modi, in his Independence Day address, reiterated that India would not enter into any deal that harms farmer interests. However, India remains open to dialogue, and the BTA remains the most structured platform for engagement.

India and the US aim to more than double bilateral trade from $191 billion to $500 billion by 2030. Trade data shows exports to the US rose 21.64% to $33.53 billion during April-July, while imports grew 12.33% to $17.41 billion. The US was India’s top trading partner during the period, with bilateral trade hitting $12.56 billion.

At present, India continues to send positive signals on trade growth, but the delay in BTA talks and tariff escalations underscore rising friction between the two strategic partners.

(With inputs from PTI)