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.