U.S.-India Trade Talks Canceled Amid Tariff Tensions

Breaking News (Reuters/ZAOBAO): The U.S.-India trade negotiations, scheduled for August 25–29 in New Delhi, have been canceled, dashing hopes for a deal to avert new U.S. tariffs on Indian goods set to take effect August 27.

Key Developments:

⚡ Tariff Hike Proceeds:

• 50% tariffs on select Indian exports (up from 25%) will apply from August 27—among the highest U.S. duties globally.

• Triggered by India’s continued imports of Russian oil, which Trump called "unacceptable."

⚡ Failed Negotiations:

• 5 rounds of talks collapsed over disputes on:

• India’s agricultural/dairy market access for U.S. firms.

• India’s refusal to halt Russian oil purchases (despite U.S./EU sanctions).

• India’s Response: Criticized "unfair blame," noting U.S./EU still buy Russian goods.

⚡ China Exempted (For Now):

• On August 16, Trump spared China from new oil-linked tariffs, citing "progress" in talks with Putin on Ukraine.

• But warned: "I may revisit this in 2–3 weeks."

Impact & Next Steps:

Indian Exporters: Face 50% tariffs on affected goods (e.g., chemicals, textiles).
U.S. Firms: Lose chance to expand access to India’s $3 trillion consumer market.
Global Trade: Russia-India-China energy ties deepen as U.S. pressure backfires.