The sixth round of negotiations over a potential India-United States trade agreement will take place soon, sources confirmed Wednesday. The talks, originally scheduled for late August, were postponed indefinitely after US President Donald Trump imposed a 50 per cent tariff on Indian imports, triggering fresh tensions between the two countries.
The upcoming round is likely to be hosted in New Delhi, according to officials. Confirmation also came directly from President Trump, who posted on Truth Social: “We are continuing negotiations to address the Trade Barriers. I look forward to speaking with my very good friend, Prime Minister (Narendra) Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!”
At the White House, Trump described India-US ties as a “very special relationship” and insisted he and PM Modi “would always be friends”. “There is nothing to worry about. We just have moments on occasion,” he added.
Responding warmly, Prime Minister Narendra Modi said he “deeply appreciates and fully reciprocates” the US President’s sentiments, reaffirming the positive assessment of bilateral ties.
India Stands Firm on Agriculture and Dairy
Despite optimism, key sticking points remain. India has consistently refused US demands for access to its price-sensitive agriculture and dairy markets, citing the livelihoods of crores of farmers, fishermen, and livestock holders who largely operate at a subsistence level.
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India has also rejected proposals to reduce tariffs on imports such as corn, soybeans, apples, almonds, and ethanol, stressing the need to protect agriculture-based MSMEs engaged in farming, livestock care, food processing, and agri-services.
Reiterating his stance, PM Modi said during his Independence Day address: “Modi is standing like a wall against any harmful policy related to the farmers, fishermen and cattle herders… India will never accept any compromise.”
Tariffs and Geopolitical Tensions
The US tariff, described by India as “unjust, unreasonable, and unfair”, includes a 25 per cent penalty linked to India’s purchase of Russian oil and weapons. Trump has accused India of “feeding Russia’s war on Ukraine”, while India has countered that Western nations continue their own trade with Russia without penalty.
Finance Minister Nirmala Sitharaman reaffirmed India’s position, stating the country “will undoubtedly buy” Russian oil as long as it is financially viable.
While the US has warned that differences cannot be resolved overnight, both sides remain hopeful of reaching at least a framework agreement by the October deadline.