The sixth round of negotiations on the proposed India–US Bilateral Trade Agreement (BTA), scheduled for August 25–29, is likely to be postponed, according to officials cited by PTI on Saturday. A U.S. delegation was expected to arrive in New Delhi later this month, but the visit is now being “rescheduled,” an official familiar with the matter said.
Trade Talks Hit by Tariff Tensions
The development comes days after U.S. President Donald Trump announced 50% tariffs on India, including 25% additional duties linked to India’s continued purchase of Russian oil. The move has cast fresh uncertainty over the trade negotiations, which had already seen friction over sensitive sectors.
So far, both sides have held five rounds of negotiations on the BTA. It was anticipated that the sixth round will accelerate the completion of the deal’s first phase by the fall of 2025. The tariff increase, however, has given the negotiations more political weight, and Indian officials are now reevaluating their approaches.
The Core Disagreements
At the heart of the trade dispute lie U.S. demands for greater market access in India’s politically sensitive dairy and agricultural sectors. India argues that such concessions would jeopardize the livelihoods of small and marginal farmers, while Washington contends that opening these markets will increase bilateral trade volumes.
“India will not compromise on the interests of its farmers and cattle rearers,” officials reiterated, underscoring that agriculture remains a red line in the negotiations.
Ambitious Trade Targets at Stake
Despite the tensions, both countries have publicly committed to fast-tracking the BTA. India and the U.S. have set a target to double bilateral trade to $500 billion by 2030, up from the current $191 billion, PTI reported. One important element in accomplishing this objective is the phased trade agreement.
The first phase of the agreement was expected to address tariff barriers, regulatory cooperation, and select areas of services trade, paving the way for a broader pact covering investment and technology exchanges in later phases.
Also Read: U.S. Freezes Gaza Visitor Visas Amid Political Firestorm and Security Fears
Geopolitical Undercurrents
In addition to commerce, the talks are taking place in the context of changing geopolitics.India’s decision to continue importing Russian oil, despite U.S. sanctions pressure, has emerged as a flashpoint in Washington’s policy circles. Analysts say Trump’s tariff announcement was as much a political signal as an economic one.
For India, balancing its energy security needs with strategic ties to the U.S. remains a delicate challenge. New Delhi officials are concerned that tying tariffs to oil imports might create a precedent where non-trade concerns start to influence trade negotiations.
While the U.S. delegation’s visit is being rescheduled rather than canceled, trade experts caution that further delays could slow progress and push the BTA timeline into 2026. Both sides are expected to continue backchannel discussions even as the formal round is deferred.
The coming weeks will reveal whether Washington’s tariff gambit forces India to concede ground or whether New Delhi doubles down on protecting its domestic constituencies while seeking common ground in less sensitive sectors.
