The United States trade delegation has postponed its scheduled visit to India for bilateral trade agreement talks, signaling a potential stall in negotiations between the two countries. The visit, led by Assistant US Trade Representative Brendan Lynch, was planned for August 25-30 and was intended to be the sixth round of discussions on a comprehensive Bilateral Trade Agreement (BTA).

The postponement occurs amidst escalating trade tensions between the US and India. These tensions include the United States' imposition of tariffs on Indian goods and India's reluctance to grant greater market access in the agriculture sector. Furthermore, states in India have voiced concerns regarding the potential impact of trade agreements on their farmers and economies.

A senior official confirmed that the US has halted trade negotiations, but whether this is a permanent or temporary measure remains unclear. The cancellation also casts doubt on the materialization of the first part of the BTA before the fall of this year, as initially planned. The BTA, in its complete form, is envisioned to encompass various areas beyond just goods trade.

Adding to the complexity, the US has implemented a 25% levy on Indian goods, effective August 7, which it describes as a "reciprocal tariff" to address the trade imbalance with India. An additional 25% tariff is slated to take effect on August 27 as a punitive measure for India's continued crude oil purchases from Russia.

India has firmly asserted its position on the matter of Russian oil imports, stating that it cannot cease these purchases due to significant cost benefits. Indian officials have also criticized the punitive tariff as "unfair and unreasonable," particularly in light of other countries, including the EU, China, and even the US, also purchasing Russian goods.

Prime Minister Narendra Modi, in his recent Independence Day speech, emphasized that India would not accept any agreement detrimental to the interests of its farmers and cattle rearers. Despite these challenges, India has maintained that avenues for dialogue remain open, with the BTA negotiations representing the most structured format for these discussions. Prior to the postponement, India had affirmed its commitment to trade negotiations through various channels, including formal teams, ministerial interactions, diplomatic channels, and industry dialogues.