In a major setback for the Modi government, the United States has canceled the upcoming trade negotiations with India that were scheduled for late August.
According to Indian media reports, the US trade delegation has officially called off its planned visit to India from August 25 to 29, putting bilateral trade talks on hold. This marks a significant escalation in the ongoing trade dispute between the two countries.
The tensions arose after Washington warned New Delhi over its continued oil imports from Russia. Despite repeated warnings, India has not announced any plans to halt Russian oil purchases. In response, the US imposed an additional 25% tariff on Indian goods, raising the overall American tariffs on Indian imports to 50%.
The White House stated that levying extra duties was both “necessary and justified” since India continues to import Russian oil directly and indirectly.
Earlier this week, the US Treasury Secretary also cautioned that if the Trump-Putin negotiations fail, tariffs on Indian imports could rise even further, surpassing the current 50% rate.
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This latest development signals growing strain in US-India trade relations, potentially impacting billions of dollars in bilateral trade.
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