US cancels trade talks with India: reports

Tensions between the United States and India over trade have intensified, with Washington canceling scheduled negotiations that were to be held in New Delhi this month.

According to Indian media, a high-level US trade delegation was expected to visit India from August 25 to 29.

However, the visit was abruptly canceled, effectively stalling the ongoing dialogue between the two countries on trade issues.

The dispute stems from India’s continued purchase of Russian oil despite repeated warnings from Washington.

The US had earlier threatened New Delhi with additional tariffs if it did not scale back its energy imports from Moscow. Despite these warnings, India has not announced any decision to halt Russian oil purchases.

In response, the US government imposed an additional 25 percent tariff on Indian exports, raising the overall tariff burden on Indian goods to 50 percent.

The White House justified the move by stating that it was both “appropriate and necessary,” citing India’s direct and indirect imports of Russian crude.

Read more: India boycotts US brands amid rising anti-American sentiment over tariffs

The situation escalated further after the US Treasury Secretary recently cautioned that, should upcoming talks between President Donald Trump and Russian President Vladimir Putin fail, the tariff rate on Indian goods could exceed the current 50 percent mark.

Analysts note that this latest standoff threatens to strain bilateral trade ties at a time when Washington is seeking to rally allies against Moscow’s energy market leverage.

For India, however, the imports from Russia remain a vital part of its strategy to secure affordable energy supplies for its growing economy.