India, US to Resume Trade Deal Talks from August 25 Amid High Tariff Concerns

India and the United States are set to hold the sixth round of negotiations on a bilateral trade deal from August 25 to 29, as both nations aim to resolve lingering issues after failing to meet the August 1 deadline. The delay has led to the imposition of a 25% tariff on Indian exports by the US, escalating trade tensions.

According to a PTI report, officials from both sides will meet in Washington for the upcoming talks, hoping to break the deadlock and finalize a mutually beneficial trade agreement.

🇮🇳 Government Prepares Relief for Exporters

While trade talks are scheduled to resume, the Indian government is working on a relief package for domestic exporters hit by the US tariffs—especially those in textiles, chemicals, food processing, engineering, marine, and agriculture sectors.

Exporters are demanding:

• Financial aid and low-interest credit
• Extension of RoDTEP (Remission of Duties and Taxes on Exported Products)
• Continuation of RoSCTL (Rebate of State and Central Taxes and Levies)
• Timely payment of pending dues
• Direct shipping lines to the US

⚠️ High-Impact Sectors

The 25% US tariff, often referred to as the “Trump Tariff,” has hit several Indian industries hard, including:

• Petroleum
• Jewellery
• Precious stones

To help cushion the impact, India’s Ministry of Commerce has been holding discussions with industry stakeholders to identify pain points and frame appropriate policy interventions.

🧮 Economic Stakes High for Both Nations

As trade negotiations continue, Indian economists warn that the United States may also face a greater economic impact if the impasse continues. A recent SBI Research note highlighted the risk of credit downgrades for the US economy due to prolonged trade friction with India.