US-India trade talks on hold over 50% tariff standoff
Trade talks between the US and India, set for August 25, 2025, are now on hold thanks to a standoff over a hefty 50% US tariff.
This tariff combines a 25% reciprocal duty with another 25% penalty tied to India's oil imports from Russia.
Both countries have pressed pause as they try to sort things out.
Sectors like textiles, chemicals, gems and jewelry feeling pressure
This dispute is blocking progress on a big trade deal both sides hoped to wrap up by fall 2025—and it could put up to $48 billion in Indian exports at risk.
Sectors like textiles, chemicals, gems and jewelry, leather, and footwear are feeling the pressure.
India has held off retaliating for now, hoping talks will help.
Despite calling the relationship "complicated," US Treasury Secretary Scott Bessent still sounds hopeful about finding common ground, which matters for both economies and their broader partnership in these tense times.