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regular-article-logo Sunday, 17 August 2025

US halts bilateral trade talks

“This visit is likely to be rescheduled,” a government official, who did not wish to be named, told news agency PTI on Saturday evening

Our Bureau Published 17.08.25, 11:57 AM
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The United States has hit a pause button on the bilateral trade talks with India, deferring their scheduled visit from August 25, signalling the Trump administration’s intent to intensify pressure as India continues to purchase Russian oil.

“This visit is likely to be rescheduled,” a government official, who did not wish to be named, told news agency PTI on Saturday evening.

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The visit of the US team, led by assistant US trade representative Brendan Lynch, was scheduled to take place between August 25-29.

The parleys were hoped to ease the tension between the two allies after US President Donald Trump doubled the reciprocal tariff to 50 per cent.

So far, five rounds of talks have been completed for the proposed bilateral trade agreement (BTA) and the US team was scheduled to visit for the sixth round.

About a week ago, Trump hinted at pause in talks. Asked if he expected increased trade negotiations with India since he announced doubling tariff, the US President had said, “No, not until we get it resolved.”

While he did not clarify, it was widely believed that Trump was referring to India’s defiance in buying Russian oil despite the punitive duty and its reluctance to open up agriculture and dairy sector for US firms.

While the 25 per cent tariff on Indian goods entering the US has come into effect from August 7, an additional 25 per cent, announced on India as punishment for buying crude oil and military equipment from Russia, will come into effect from August 27.

The US and India had announced plans to conclude the first phase of BTA by fall (September-October) of 2025. During April-July, the country’s exports to the US increased 21.64 per cent to $33.53 billion, while imports rose 12.33 per cent to $17.41 billion, according to commerce ministry data.

The development comes hours after Trump signalled that India may be spared from the secondary tariff, which was linked to the outcome of his summit talk with Russian President Vladimir Putin in Alaska.

Earlier this week, US treasury secretary Scott Bessent had said secondary sanctions on India for purchasing Russian oil could go up if “things don’t go well” between Trump and Putin.

The meeting concluded without any agreement on ending the Russia-Ukraine war.

But Trump maintained that he did not immediately need to consider retaliatory tariffs on countries such as China for buying Russian oil but might have to “in two or three weeks.”

Asked by Fox News if he was now considering such action against Beijing after he and Putin failed to produce an agreement to resolve or pause Moscow’s war in Ukraine, Trump said, “Well, because of what happened today, I think I don’t have to think about that.”

“Now, I may have to think about it in two weeks or three weeks or something, but we don’t have to think about that right now. I think, you know, the meeting went very well,” he added.

Before heading towards Alaska, Trump had said, “Well, he (Putin) lost an oil client, so to speak, which is India, which was doing about 40 per cent of the oil. China, as you know, is doing a lot…And if I did what’s called a secondary sanction, or a secondary tariff, it would be very devastating from their standpoint. If I have to do it, I’ll do it. Maybe I won’t have to do it.”

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