Trade Deal Delayed: US team not coming for next round of negotiations in India, say government sources


The US team scheduled to come for the next round of bilateral trade negotiations is no longer coming to India, said ANI citing government sources. The team was to arrive on August 25 for the sixth round of talks.

“US Trade team not coming to India for the next round of trade negotiations. The US team was scheduled to visit India on 25th August for the 6th round of negotiations,” government sources told ANI.

Five rounds of talks have already taken place, with the last round taking place on July 14-18, 2025 in Washington DC. India and the US are discussing tariff concessions and market access in key sectors, with an aim to finalise an interim agreement.

The talks cover various areas including market access, sanitary and phytosanitary measures (SPS), technical barriers to trade (TBT), digital trade, customs and trade facilitation. Officials from both sides have held intensive negotiations, and have made progress toward a balanced agreement with initial success.

On whether the US team is coming for negotiations scheduled in the last week of August, Commerce Secretary Sunil Barthwal said, “Closer to the date, which is the end of the last week of August, we will be able to know how that round will be progressing.”

Commenting on US BTA negotiations, he said, “Our Bilateral Trade talks negotiations with the United States are going on. We are engaged. Bilateral deliberations are happening at different levels. One is at the negotiating team’s level. Another one happens at the minister’s level. Third, happens at the diplomatic level, and we also engage with different industries of the US, companies and everybody to look into their issues. So this negotiation is happening across various channels.”

“These negotiations are happening and we are engaged. The US is a very important partner for us. For the US, India is also an important partner,” he added.

A Joint Statement was issued during Prime Minister Narendra Modi’s visit to Washington DC, setting the goal of increasing bilateral trade to USD 500 billion by 2030 and to pursue Bilateral Trade Agreement (BTA) in this direction.

The two countries aim to complete the first tranche of the BTA by 2025. India and the US have set a target to double their trade to USD 500 billion by 2030.

India is seeking improved market access for its goods and services, while the US is pressing for greater market access in key sectors.

Earlier, expressing concern over the impact of US tariffs on Indian exports, a senior government official said the government is keeping a close watch on the sectors most affected by the US market and is working with key stakeholders to assess vulnerabilities.

“We are in touch with the stakeholders. We understand which sectors are more exposed to us, and our commodity divisions are in discussions with various EPCs. The Minister has also taken meetings with the EPCs, particularly with those sectors which are labour-intensive. I have also taken a meeting with our officials, who are talking to the EPCs, trying to understand their exposure to the US,” the official said.

Highlighting the varying levels of export dependence, the official explained, “There are other companies which are more diversified, which are not only exporting to the US, but also exporting to the EU, exporting to the UK, exporting to other countries. Now, companies are also involved in standardising their exports; they may face some challenges that they are identifying, but they are also looking at other possibilities for diversification. And therefore, you know, our focus on this diversification and this export promotion mission is very, very important.”

US President Donald Trump has said there will be no trade talks with India until the tariff dispute is resolved. He said this after his administration’s decision to double the tariff on Indian imports. “No, not until we resolve that,” he replied when asked by ANI at the Oval Office if he expected talks to resume in the wake of the new 50 per cent tariff.

The White House on Wednesday issued an Executive Order imposing an additional 25 percentage points in tariffs on Indian goods, raising the total levy to 50 per cent. The administration cited national security and foreign policy concerns, pointing specifically to India’s ongoing imports of Russian oil.

The order claims that these imports, whether direct or via intermediaries, present an “unusual and extraordinary threat” to the United States and justify emergency economic measures.

In early August, the US imposed a 25 per cent tariff on most Indian goods, effective August 7, with exemptions for pharmaceuticals, electronics, semiconductors, and energy products. But US President Donald Trump further imposed an additional 25 per cent tariff on India, making the total imposition at 50 per cent.

According to US officials, the initial 25% tariff came into effect on 7 August. The additional levy will take effect in 21 days and apply to all Indian goods entering US ports — with exceptions for items already in transit and certain exempt categories.

The order also provides flexibility for the president to modify the measures, depending on changing geopolitical circumstances or retaliatory actions by India or other nations.

Prime Minister Narendra Modi responded defiantly during a speech at the MS Swaminathan Centenary International Conference in New Delhi, signalling that New Delhi would not back down in the face of economic pressure.

“For us, the interest of our farmers is our top priority,” PM Modi said. “India will never compromise on the interests of farmers, fishermen and dairy farmers. I know we will have to pay a heavy price for it, and I am ready for it. India is ready for it.”

India has consistently pushed back against opening sensitive sectors such as agriculture and dairy to international competition, citing the potential impact on millions of rural livelihoods.

With the inputs of ANI



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