US cancels trade talks visit to India amid tariff row
What's the story
The United States has canceled a planned visit to India for trade negotiations, sources reported. The visit was scheduled from August 25-29 and was to be the sixth round of talks on a bilateral trade agreement. The cancellation occurs amidst escalating trade tensions, including a total of 50% tariffs on Indian goods due to a 25% tariff already in effect and an additional 25% levy related to Russian oil imports.
Negotiation delay
Rescheduling of visit anticipated as countries aim for fall BTA
The postponement of the US trade team's visit is significant as it comes just days before an additional 25% tariff on Indian goods is set to take effect on August 27, adding to an existing 25% tariff. The rescheduling of the visit is anticipated, as both countries aim to finalize the BTA by fall this year. However, no new date has been decided yet for these crucial talks, according to various reports.
Market access
India wary of US demands for greater market access
One major sticking point in the negotiations has been the United States's demand for greater market access in agriculture and dairy. India is wary of these demands due to their potential impact on small and marginal farmers' livelihoods. The country is also considering religious and cultural sensitivities related to milk imports.
Export growth
India's exports to US increase despite trade tensions
Despite the ongoing trade tensions, India's exports to the United States have increased. In April-July FY26, exports stood at $33.53 billion, a 17.8% increase from $27.57 billion in the same period last year. The commerce and industry ministry is working with exporters to assess the impact of tariffs on trade with America, and inter-ministerial committees are looking into sectoral impacts of these tariffs.
Agricultural concerns
Kerala government raises concerns over potential crop risks
Last month, the Kerala government had raised its "grave concern" over the India-US BTA negotiations, citing risks to crops such as coconut, rubber, pepper, cardamom, tea, and coffee. They stressed that any agreement affecting agriculture should involve consultations with state governments to prevent severe socioeconomic and ecological consequences and urged them to "refrain from signing the agreement."