A scheduled trip by a U.S. trade delegation to India later this month has been called off, according to reports.
Why It Matters
Several rounds of talks on a bilateral trade deal between the U.S.—the world’s largest economy—and India, the world’s most populous nation and itself a major economic power, have so far failed to yield an agreement.
An executive order from President Donald Trump, issued earlier this month, slapped India with additional 25 percent tariffs over its Russian oil purchases, bringing the overall tariff on Indian imports into the U.S. to 50 percent. This will come into effect on August 27, making India one of the countries hardest hit by the new raft of White House tariffs.
India’s government called the move “unfair, unjustified and unreasonable” at the time.
Newsweek has approached the Indian Ministry of External Affairs and the U.S. Trade Representative for comment via email sent outside of regular working hours.
President Donald Trump and Indian Prime Minister Narendra Modi are seen on the South Portico of the White House in Washington, D.C., on June 26, 2017.
Olivier Douliery/ Abaca/Sipa via AP Images
What To Know
U.S. trade negotiators were expected to visit New Delhi between August 25 and 29, and a revised date has not been confirmed, Reuters reported, citing an anonymous source with direct knowledge of the matter. Unnamed sources told Indian broadcaster NDTV Profit that the talks would likely be rescheduled.
India’s external affairs minister, Subrahmanyam Jaishankar, told Newsweek in June he was hopeful for a deal as “very intricate” trade negotiations continued.
One anonymous Indian government official told Reuters that “most differences” between U.S. and Indian negotiators had been resolved after the fifth round of talks, “raising hopes of a breakthrough.”
India has been reluctant to cave in to U.S. demands to open up its dairy and agriculture markets. Indian Prime Minister Narendra Modi did not directly reference trade tensions with Washington during a speech on Friday, but said he had “stood as a wall for the farmers and livestock keepers against any detrimental policy, protecting their rights and livelihoods.”
What People Are Saying
India’s Ministry of External Affairs said on August 6 that it was “extremely unfortunate that the U.S. should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.”
U.S. Treasury Secretary, Scott Bessent, called India a “bit recalcitrant” in trade talks during an appearance on Fox Business earlier this week.
What Happens Next
It is not yet clear when the next round of trade talks between U.S. and Indian teams will take place, and whether the additional tariffs will come into force at the end of the month.