The next round of negotiations on the India-US bilateral trade agreement (BTA), originally scheduled for August 25-29, is likely to be postponed, an official familiar with the matter told PTI. This sixth round of talks follows five prior rounds aimed at deepening economic ties between the two nations.
Rescheduling Comes Amid Rising Trade Tensions
The potential deferment takes on added significance as the United States has recently imposed steep tariffs on Indian goods. A 25 per cent duty came into effect on August 7, and an additional 25 per cent levy, penalizing India for purchasing Russian crude oil and military equipment, is set to begin on August 27. Combined, these tariffs would push duties on Indian exports to the US to 50 per cent.
The US has also pressed India to open up politically sensitive sectors, such as agriculture and dairy, but New Delhi has firmly rejected such demands, emphasizing the potential threat to the livelihoods of small farmers and cattle rearers.
Trade Between India and the US Continues to Grow
Despite rising tensions, trade flows have remained robust. Commerce ministry data show that India’s exports to the US rose 21.64 per cent to USD 33.53 billion between April and July 2025, while imports climbed 12.33 per cent to USD 17.41 billion. During this period, the US emerged as India’s largest trading partner, with bilateral trade totaling USD 12.56 billion.
India and the US have pledged to complete the first phase of the BTA by fall 2025, with an ambitious goal of more than doubling bilateral trade to USD 500 billion by 2030, up from the current USD 191 billion.
PM Modi Signals Strong Support for Farmers and ‘Swadeshi’ Initiatives
Following the announcement of new US tariffs, Prime Minister Narendra Modi highlighted the importance of supporting domestic industries and farmers. In his Independence Day address, he called for a renewed focus on ‘swadeshi’ (Made in India) products and reiterated that India would not compromise on the welfare of farmers, fishermen, and livestock rearers.
“Modi is standing like a wall against any harmful policy related to the farmers, fishermen, and cattle rearers of India. We will never accept any compromise regarding our farmers, their livestock rearers, and fishermen,” the Prime Minister said.
Global Politics and Trade: A Complicating Factor
Adding another layer of complexity, a high-profile discussion on the Ukraine conflict between former US President Donald Trump and Russian President Vladimir Putin took place in Alaska over the weekend. Trump hinted that closer Washington-Moscow ties could influence India’s trade sanctions, noting that any immediate secondary sanctions would be “devastating” for Russia, suggesting a potential window for reconsidering the additional 25 per cent tariff on Indian goods.
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