Effect of tariff tension: US team’s visit to India postponed, crisis on trade agreement

New Delhi
The next round of talks for the proposed Indo-US Bilateral Trade Agreement (BTA) are expected to be delayed. According to an official, an American delegation, which comes later this month, may postpone his visit to New Delhi.
The conversation for this agreement has already passed through five rounds, and the sixth round plan was made from 25 to 29 August. On the condition of anonymity, the officer told the news agency, “The journey is likely to be re -determined.”

This postponement or renovation has happened at a time when Washington has imposed new trade punishment on India. The 25 percent fee on Indian goods is applicable from August 7, and the additional 25 percent fee declared as a penalty on the purchase of crude oil and military equipment from Russia is going to be implemented from August 27. With these fees, the fee on Indian exports to the US will increase to 50 percent. The US is also pressurizing New Delhi to open politically sensitive areas like agriculture and dairy. India has clearly denied such concessions, arguing that these are a threat to the livelihood of small farmers and livestock.

Despite stress, there has been an improvement in business relations between India and the US. According to Commerce Ministry data, India’s exports to the US increased by 21.64 percent to US $ 33.53 billion during April-July 2025, while imports increased by 12.33 percent to US $ 17.41 billion.
It is noteworthy that the US was the largest trading partner in India during this period, whose bilateral trade reached US $ 12.56 billion.

New Delhi and Washington have committed to meet the first phase of the bilateral trade agreement (BTA) by the autumn of 2025, and aimed to double bilateral trade by 2030 to double US dollars to US $ 500 billion by 2030.

After US President Donald Trump announced an additional 25 percent tariff on Indian exports, Prime Minister Narendra Modi in his Independence Day speech urged to turn to ‘Swadeshi’ (manufactured in India) products and expressed solidarity with farmers and fishermen.

Prime Minister Modi said, “Modi is standing like a wall against any harmful policy related to farmers, fishermen and cattle rearers of India. We will not accept any compromise in the matter of our farmers, cattlemen and fishermen.”

Meanwhile, there was a significant discussion on the Ukraine dispute between Trump and Russian President Vladimir Putin in Alaska on Saturday (Indian time), which raised hopes that improving Washington-Moscow relations could soften the extra 25 percent tariff on India.