India’s foreign minister said trade talks with the US are still ongoing despite rising tensions. The US plans to impose heavy tariffs on Indian goods due to India’s increased Russian oil imports. A 25% tariff is already in place, and another 25% will begin on August 27.
The US trade delegation’s visit to New Delhi, scheduled for August 25-29, was canceled. This ended hopes of delaying or reducing the new tariffs. India insists it must protect its farmers and small producers during these negotiations.
Earlier this year, talks broke down over India’s refusal to open its agriculture and dairy sectors. Bilateral trade between the two countries is worth over $190 billion. India emphasizes the need to act in its “national interest.”
Experts warn the full tariffs could reduce India’s economic growth by 0.8% this year and next. They also say tariffs may hurt India’s future as a global manufacturing hub. India criticizes US President Trump’s public foreign policy style as unusual.
India’s minister also questioned why the US targets India for Russian oil purchases but not bigger buyers like China or the EU. He added that India’s Russian oil imports were not discussed before the tariff announcement. Trade talks continue despite these challenges.