US cancels India trade talks scheduled for August

NEW DELHI (Reuters) - A planned visit by US trade negotiators to New Delhi from August 25-29 has been canceled, delaying talks on a proposed bilateral trade agreement, Indian business and financial news network NDTV Profit reported on Saturday, citing people familiar with the matter.

The visit for a round of negotiations for the proposed bilateral trade agreement will most likely be rescheduled, the Indian media report stated, citing sources, adding that both sides remain in touch, but a fresh schedule for talks has yet to be finalised.

The development came after US President Donald Trump hit 25% tariffs on India in July and threatened to "substantially" hike them on Indian imports over the country's purchase of Russian oil.

The upcoming round of talks was much anticipated, given that it was scheduled around Aug 27, which is when the imposition of the additional 25% secondary sanctions on India is to take place, the report added.

The fall deadline of September–October for finalising the first tranche of the bilateral trade agreement between India and the United States appears uncertain.

On Thursday, senior government officials said India remained "fully engaged" with Washington on the proposed trade deal, with talks continuing across multiple levels, from formal negotiating teams to ministerial, diplomatic channels, and industry-level interactions.