The United States has canceled trade negotiations with India, which were scheduled to take place in New Delhi between August 25 and 29, according to media reports.
The India-US negotiations for a trade deal, which had been going on since February, have been paused, Indian newspaper The Indian Express reported on Sunday, citing sources privy to the matter.
The upcoming round of talks, which was slated to take place in the last week of August, will now be held at a later date, according to Indian news channel NDTV.
India is subject to the highest US tariffs
The bilateral talks on trade are crucial for India, as the US has levied a 50% tariff on Indian goods — the highest on any country globally.
Indian traders have begun paying a 25% tariff already; however, the remaining 25% tariff is going to come into effect from August 27.
The delay in negotiations deals a blow to Indian manufacturers who were hoping to get some relief before the remaining tariff on Indian goods kicks in.
Tensions between India and the US escalated when, earlier this month, US President Donald Trump announced an additional punitive 25% tariff on Indian goods, citing India’s import of Russian oil.
So far, India and the US have held five rounds of negotiations, which have resulted in a stalemate over disagreement on opening India’s vast farm and dairy sectors and stopping Russian oil purchases.
Edited by: Dmytro Hubenko
