THE DELAY in negotiations with the US is a setback for Indian business owners who will pay an additional 25% tariff that will kick in on August 27.
The United
States has cancelled trade negotiations
with India, which were
scheduled to take place in New Delhi between August 25 and 29, according to
media reports.
The India-US
negotiations for a trade deal, which had been going on since February,
have been paused, Indian newspaper The Indian Express reported on Sunday,
citing sources privy to the matter.
The upcoming round of talks, which was slated to take
place in the last week of August, will now be held at a later date, according
to Indian news channel NDTV.
The bilateral talks on trade are crucial for India, as
the US has levied a 50% tariff on
Indian goods — the highest on any country globally.
Indian traders have begun
paying a 25% tariff already; however, the remaining 25% tariff is going to come into
effect from August 27.
The delay in negotiations deals a blow to Indian
manufacturers who were hoping to get some relief before the remaining tariff on
Indian goods kicks in.
Tensions between India and
the US escalated when, earlier this month, US President Donald Trump announced an
additional punitive 25% tariff on Indian goods, citing India's import of Russian oil.
So far, India and the US have held five rounds of
negotiations, which have resulted in a stalemate over disagreement on opening
India's vast farm and dairy sectors and stopping Russian oil purchases.