President Donald Trump seems to be sending India an insulting message. A scheduled visit by U.S. trade representatives to New Delhi later this month has been called off, according to Indian news broadcaster NDTV Profit.
The visit that was expected to take place between Aug. 25 and Aug. 29 will likely be rescheduled, NDTV reported, citing people familiar with the matter.
Earlier this month, India-U.S. trade relations reached a critical low as the U.S. imposed up to 50% tariffs on key Indian exports. The move, led by the Trump administration, combined a 25% reciprocal tariff with an additional 25% penalty tied to India’s continued oil imports from Russia. Sectors most affected include textiles, gems and jewellery, seafood, chemicals, and solar equipment, together representing over half of India’s $86 billion exports to the U.S.
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India condemned the tariffs as unjustified and launched support measures for exporters, including tax cuts and financial relief. Banks are offering easier loans, and industries are being urged to diversify export markets. Despite potential GDP losses of 0.4-1%, analysts suggest India’s strong domestic demand will soften the blow.
The tariffs have delayed the next round of U.S.-India Bilateral Trade Agreement (BTA) talks. Geopolitically, the crisis has pushed India closer to China and Russia, signaling a recalibration of its strategic autonomy. As India seeks trade pacts with the UK, EU, and ASEAN, it aims to reduce overdependence on the U.S. market.
This standoff marks the worst diplomatic rift between the two nations in decades with long-term implications for global trade dynamics and geopolitical alliances.
India has said it was being targeted unfairly, while calling out the EU and the U.S. on their continuing trade with Russia.
CNBC reports that India’s foreign ministry said this in a statement earlier this month:
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“It is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion [for them].”
The current India-U.S. tariff conflict marks a turning point in their strategic and economic relationship. For India, the imposition of steep U.S. tariffs and the cancellation of a key diplomatic visit are not just economic setbacks, but signals of a deeper geopolitical divergence.
India’s response, criticizing Western hypocrisy on Russia and accelerating efforts to diversify export markets, highlights a more assertive foreign policy rooted in strategic autonomy. New Delhi is also seeking closer ties with alternate partners like the UK, EU, and ASEAN, reducing reliance on any single trade bloc, including the U.S.
For the United States, these actions may project strength in trade negotiations but risk alienating a key Indo-Pacific ally at a time when balancing China’s influence remains a shared strategic objective. The tariffs, viewed by many in India as punitive and politically motivated, have eroded goodwill and stalled progress on the long-awaited Bilateral Trade Agreement (BTA).