Key Points:
✔ Deadlock Continues: India and the US fail to resolve disputes over auto, steel, and dairy tariffs in the latest round of talks.
✔ August Deadline: Negotiations to resume next month, with both sides aiming for a deal by September-October.
✔ Trump’s Tariff Threat: US warns of new tariffs on BRICS nations, including India, if trade talks collapse.
India-US Trade Deal Stalls Again, August Talks Crucial for Breakthrough
The long-awaited trade agreement between India and the United States remains in limbo, with negotiations hitting yet another roadblock. Sources reveal that the latest round of discussions ended without resolution, pushing talks to August when a US delegation is expected in New Delhi.
Both nations had hoped to finalize a bilateral trade agreement (BTA) by September or October. However, the fifth round of talks in Washington failed to break the deadlock, particularly on contentious issues like auto components, steel tariffs, and agricultural market access—especially in India’s politically sensitive dairy sector.
Dairy Dispute: India’s Red Line
India has firmly resisted US demands for greater access to its dairy market, a sector that supports over 80 million small farmers. This resistance has been a major sticking point, derailing earlier hopes of a June agreement. Despite US President Donald Trump’s repeated claims that the deal was “almost done,” negotiations collapsed ahead of the July 9 deadline.
Trump’s Tariff Threats Add Pressure
Adding to the tension, Trump has warned of imposing new tariffs on BRICS nations, including India, if they move towards de-dollarization—a shift away from the US dollar in global trade. The US President has even floated the idea of 100% duties on Russian goods and secondary sanctions on countries purchasing Russian oil, a move that could severely impact India, the second-largest buyer of Russian fossil fuels.
While at least 14 countries have received formal notices about impending US tariffs (ranging from 25% to 40%), India has so far been spared. This omission suggests that negotiations are still alive, though under increasing pressure.
Make-or-Break August Talks
The upcoming August discussions could determine whether India avoids punitive tariffs—some as high as 500%—and finally secures a trade deal that has remained elusive for years. With both economic and diplomatic stakes rising, the world will be watching closely to see if the two nations can bridge their differences—or if trade tensions will escalate further.
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