India-US relations which have taken a hit due to President Donald Trump’s tariff tantrums over New Delhi’s oil trade with Russia, might not see a mend soon. Even as the ties between Washington and New Delhi became tough, there were hopes that the highly anticipated trade deal might do some wonders.

However, that too now seems like a distant dream. A team from the United States was scheduled to visit India from August 25 to 29 to conduct discussions on a trade deal agreement. The planned visit is learnt to have been cancelled and would likely be rescheduled.

During its India visit, the US team was to carry forward negotiations on the bilateral trade agreement, which is gaining all the highlight now in view of US President Trump’s announcement of a fresh 25% levy on Indian goods over Russian oil imports, in addition to the 25% tariffs he had imposed before.

India-US trade deal not happening soon?

The upcoming visit by the US team was to be the sixth round of trade deal talks between the two countries, which may now be postponed, an official told PTI. The US team’s India visit is expected to be postponed now. Up to now, 5 rounds of discussions have been completed for the proposed bilateral trade agreement (BTA).

It is worth mentioning here that the US was India’s largest trading partner during the April-July period of financial year 2025-26. Bilateral trade between the two countries amounted to $12.56 billion. Since April this year, India’s exports to the US have been showing positive growth.

What are the pain points in India-US trade deal?

Access to India’s agriculture and dairy sectors is a big pain point of the India-US trade deal as the latter wants a greater market access. India, on the other hand, is not ready to accept this as it affects the livelihood of small and marginal farmers. Religious and cultural sensitivities are also being considered in the import of milk.

During his Independence Day speech too on Friday, PM Narendra Modi reiterated the push for ‘swadeshi’ (Made in India) products. “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.

US tariffs on India: What is the good news?

Recently, Trump concluded the much awaited and anticipated meeting with Russian President Vladimir Putin, however, the two leaders failed to arrive at a solution for peace in Ukraine.

He, however, indicated that there might not be more tariffs going ahead for India and China too, both of which import Russian oil. In an interview to Fox News after the talks, Trump said that he would consider the question of the penalty tariffs on Russian oil in “two or three weeks”.

Trump even claimed that India has stopped buying Russian oil, however, there has no word on this from New Delhi. “Well, he (Putin) lost an oil client, so to speak, which is India, which is doing about 40% of the oil; China, as you know, is doing a lot, and there are a few other countries.”

“If I did what’s called a secondary sanction or a secondary tariff, it would be devastating from their (Russia’s) standpoint. If I have to do it, I will do it; maybe I won’t have to do it,” Trump told Fox News in an interview prior to the talks with Putin on August 15.