Trump hits pause on trade talks with India, plays up tariff issue

US President Donald Trump has ruled out the possibility of trade negotiations with India until the issue of tariffs is resolved.

“No, not until we get it resolved,” Trump told reporters in the Oval Office on Thursday, replying to a question on whether he expects increased trade negotiations with India after raising the tariffs on the country to 50%.

His statement comes ahead of the scheduled visit of US trade negotiators to New Delhi later this month for the sixth round of the Bilateral Trade Agreement (BTA) talks. “There is no fresh communication from the US. The visit stands as of now,” said an Indian official.

Trump on Wednesday signed an executive order doubling the tariffs on US’ imports from India to 50%.

It is the highest duty levied on any country and on a par with Brazil, in a move marking an escalation of trade tensions between the two countries.

While the initial 25% duty came into effect Thursday, the additional 25% is effective August 27.

The India-US BTA talks have faced turbulence as Washington wants greater market access for its farm products including genetically modified corn and soyabean, apples, almonds and ethanol as well as dairy goods.

New Delhi is resisting the demand as it will have a direct bearing on local farmers.

“The interests of our farmers are our topmost priority. India will never compromise the interests of its farmers, its cattle rearers and fisherfolk,” Prime Minister Narendra Modi said at an event in New Delhi on Thursday, without directly referring to the US.

The upcoming round is an opportunity for the two sides to find a middle ground so that the tariffs can be rolled back. Around half of India’s goods exports to the US—worth $86.5 billion in fiscal 2025—will be directly hit by the tariffs.