US negotiators postpone August 25 Delhi visit, trade talks with India stalled ahead of sixth round

A long-planned visit by a US team to New Delhi for trade negotiations has been cancelled, as reported by PTI. The delegation, led by Assistant US Trade Representative Brendan Lynch, was due to arrive on 25 August for the sixth round of discussions on a proposed bilateral trade agreement. As reported by PTI, an official confirmed the development, saying, “From their (US) side, the trade negotiations (are) halted, whether (this is) forever or temporary, there’s still no idea. They said they won’t come for the August 25 meeting.”Five rounds of talks have been completed so far. The sixth was expected to be crucial, coming just as additional US tariffs were set to come into force.

Timetable under pressure

As reported by NDTV Profit, sources familiar with the matter said both governments remain in touch, but no new dates have been agreed. This uncertainty now clouds the September–October target set by both sides to finalise the first tranche of the trade deal.

On Thursday, senior Indian officials had said that the country was “fully engaged” with the United States through multiple channels, including ministerial and industry-level dialogues. They described the US as a “very important trade partner” but added that the status of the August round would only be known closer to the date.

The cancellation now makes it unlikely that tariff relief for India will come any time soon.

Rising tariff pressures

The setback comes against the backdrop of steep tariff measures announced by Washington. On 7 August, the US imposed a 25% levy on Indian exports, which it described as a “reciprocal tariff” to address trade imbalance. President Donald Trump has since doubled the additional duty to 50%.A second 25% penalty rate is due to take effect on 27 August, specifically targeting India’s “continued purchases” of Russian crude oil.India has criticised the move. Officials called the measures “unfair and unreasonable,” pointing out that other major buyers including the EU, China and the US itself continue to import Russian commodities.

India’s position on Russian oil

Despite US pressure, India has kept up its purchases. According to data, imports averaged 1.8 million barrels per day in the first half of August, higher than the 1.6 million barrels per day recorded in July.

A government source explained the rationale: “We are buying more from (the US) than before, but we are still buying Russian oil. We can not stop (it).” The source added that Russian oil makes “a lot of difference in terms of money.”

Prime Minister Narendra Modi also took a firm line in his Independence Day address, making clear that India would not accept any trade arrangement that undermines the interests of farmers or cattle rearers.

Trump’s warning

President Trump, speaking to Fox News on Friday, said, “he (Russian President Vladimir Putin) lost an oil client, so to speak, which is India, which was doing about 40% 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.”

The comment came as Trump travelled to Alaska for a meeting with Putin. That summit ended without any agreement on the war in Ukraine.

The cancelled visit was seen as a vital chance to ease rising trade tensions. Without it, both sides now face the prospect of tougher tariffs, political strain and a delayed trade deal.

For India, the stakes are high. It needs continued access to energy imports and tariff relief for its exporters. For Washington, the issue is about enforcing its stance on Russia and narrowing the trade gap with India.

With talks halted and no new timetable agreed, the path forward remains uncertain.