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U.S. Suspends Sixth-Round India Trade Talks Pending Oil-Linked Tariff Decision

The cancellation deepens uncertainty over a 50% duty scheduled for August 27, casting doubt on a September–October interim trade deal.

Peter Navarro, Senior Counselor for Trade and Manufacturing for U.S. President Donald Trump, speaks to the media outside the White House in Washington, D.C., U.S., April 30, 2025.  REUTERS/Evelyn Hockstein/ File Photo
US President Donald Trump shakes hand with Russian President Vladimir Putin, as they meet to negotiate for an end to the war in Ukraine, at Joint Base Elmendorf-Richardson in Anchorage, Alaska, U.S., August 15, 2025.
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Overview

  • The U.S. delayed its trade delegation’s August 25–29 visit to New Delhi without setting a new date, halting the sixth round of negotiations on a bilateral trade agreement.
  • A 25% reciprocal tariff on Indian exports is already in force and an additional 25% penalty tied to Russian-oil purchases was set to take effect on August 27.
  • President Trump signaled he might pause or reconsider the secondary tariff after his summit with Vladimir Putin, introducing short-term ambiguity into U.S. policy.
  • India’s government condemned the measures as unfair, defended its purchase of discounted Russian crude on energy-security grounds and is preparing sector-specific relief measures.
  • The impasse makes immediate tariff relief unlikely and jeopardizes the September–October timeline for finalizing the first tranche of a U.S.–India trade deal.