The US-India trade negotiations are currently delayed, with the US canceling its planned visit to New Delhi from late August amid rising tensions over tariffs, agricultural policies, and Russian oil imports.

Despite the delays, both countries aim to conclude the first phase of a bilateral trade agreement by autumn 2025, with the goal of doubling bilateral trade to over USD 500 billion by 2030, and current trade showing positive growth.

The US has imposed tariffs on India reaching a combined rate of 50%, one of the highest it has placed on any trading partner, prompting a strong response from India.

While tensions persist, both nations remain in contact, but no new schedule for trade talks has been set, adding uncertainty to the negotiations.

Negotiations include discussions on market access, sanitary and phytosanitary measures, technical barriers, digital trade, and trade facilitation, with progress towards a balanced agreement.

Both countries are engaging at multiple levels, including ministerial and diplomatic, to reach an interim trade deal, though the process has faced setbacks.

India's government is actively engaging with exporters and sectoral committees to assess the impact of tariffs, with concerns raised by states like Kerala over potential damage to agriculture, urging for consultations.

The delay in negotiations raises questions about the timeline, especially as both sides had hoped to finalize the first phase by October-November, but recent developments have caused setbacks.

The US tariffs on India have reached 50%, eliciting a strong response from India, which is exploring alternative markets and strategies to mitigate the impact, particularly in labor-intensive sectors like textiles.

The postponement is significant as both countries aim to finalize a bilateral trade agreement by fall 2025, though no new date has been set, and the sixth round of talks was seen as crucial.

Diplomats emphasize that both nations have strong incentives to maintain trade dialogue, but current hardening US positions and India's resistance on key issues make negotiations fragile.

The postponement reflects broader geopolitical and domestic political factors, including recent diplomatic tensions and the lack of a concrete agreement following US-Russia discussions.