With Prime Minister Modi Drawing Red Line On Agriculture And Dairy, Trump Administration Defers August Trade Talks

The next round of negotiations for the proposed bilateral trade agreement (BTA) between India and the United States is set to be delayed, with a visiting American delegation expected to defer its trip to New Delhi, reported PTI.

The sixth round of talks, originally planned for 25–29 August, is now likely to be pushed back, according to a senior official cited in the report.

“This visit is likely to be rescheduled,” an official was quoted as saying by PTI.

A Financial Express report also quoted a senior official, “From their (US) side, the trade negotiations (are) halted, whether (this is) forever or temporary, there’s still no idea. They said they won’t come for the August 25 meeting.”

The postponement comes at a sensitive moment in bilateral ties, following Washington’s decision to impose steep tariffs on Indian exports.

A 25 per cent duty on a range of Indian goods took effect on 7 August, while an additional 25 per cent levy, imposed as a penalty for New Delhi’s purchase of Russian crude oil and defence equipment, will be enforced from 27 August.

Taken together, the duties amount to a staggering 50 per cent tax burden on Indian exporters.

In the proposed BTA, the Trump administration is seeking reduced tariffs on products like corn, soybeans, apples, almonds and ethanol, as well as increased access for US dairy products. New Delhi is, however, strongly opposing these demands as these will have a direct bearing on farmers.

However, Prime Minister Narendra Modi has publicly made it clear that India would not agree to a deal that harm the interests of its agriculture and dairy sector.

"Modi is standing like a wall against any harmful policy related to the farmers, fishermen and cattle rearers of India. India will never accept any compromise regarding its farmers, its livestock rearers, its fishermen," he said while addressing the nation on the 79th Independence Day.

According to commerce ministry data, India’s exports to the US rose 21.64 per cent to USD 33.53 billion in April–July 2025, while imports grew 12.33 per cent to USD 17.41 billion.

The US continues to be India’s largest trading partner, with bilateral trade valued at USD 12.56 billion in the April–July 2025–26 period.

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