The future of the next round of India-US trade negotiations remains uncertain, with no firm date set for the visit of US negotiators. A senior government official on Thursday confirmed that while discussions were initially planned for August 25, clarity on the schedule would only emerge closer to the date.
India and the US, the official stressed, continue to stay “engaged” at multiple levels — diplomatic, commercial, and political. However, the talks have been overshadowed by Washington’s threat of additional tariffs.
Possible Additional Tariffs Tied to Geopolitics
Currently, the US has already imposed a 25% tariff on Indian imports, effective since August 7. A second round of tariffs, announced earlier, is expected to take effect on August 27. Beyond these, officials warned of an extra 25% levy, which they said is linked less to trade issues and more to evolving geopolitical developments.
“Since a lot of developments are happening — especially the expected meeting between Russian President Vladimir Putin and former US President Donald Trump in Alaska — the decision on the additional tariffs will depend on how geopolitics unfolds in the next 21 days,” the official said.
US Treasury Warning
Adding to the uncertainty, US Treasury Secretary Scott Bessent cautioned that India could face secondary tariffs if discussions between Trump and Putin fail to produce results on Ukraine.
Speaking to Bloomberg, Bessent remarked:
“We put secondary tariffs on the Indians for buying Russian oil. If things don’t go well, those sanctions or tariffs could increase.”
He further emphasized that sanctions are flexible, stating:
“Sanctions can go up, they can be loosened, or last indefinitely. There’s a Russian shadow fleet of oil ships we could still crack down on.”
Bessent also hinted at pressure on other global players, noting that Europe must join US efforts, and recalling discussions at the G7 summit in Canada where leaders were reluctant to commit to higher tariffs against China.
Background to the Stalled Negotiations
India-US trade negotiations had been making progress over the past months. However, they hit a pause after President Trump abruptly escalated tensions by doubling tariffs on Indian goods to 50%, as reported earlier on August 8.
The stalemate widened as New Delhi stood firm on its stance regarding agricultural market access, a key sticking point.
India’s Response
Reacting to the mounting tariff threats, the Ministry of External Affairs (MEA) said the US measures are “unjustified and unreasonable.”
“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” the MEA statement said.