Trump Freezes U.S.-India Trade Talks After Putin Summit, Slaps 50% Tariffs on Indian Goods

* Trump administration cancels trade talks scheduled for August 25-29 in New Delhi. * New tariffs of up to 50% on Indian goods to take effect August 27 amid objections to Russian oil imports. The Trump administration has canceled U.S.-India trade negotiations scheduled for August 25-29 in New Delhi and announced new tariffs of up to 50% on Indian goods, which will take effect on August 27, 2025. The move, which marks a significant escalation in trade tensions between the two strategic partners, follows a meeting between President Donald Trump and Russian President Vladimir Putin on August 16. As justification, the U.S. cited India’s continued importation of Russian oil despite American objections. On August 17, 2025, reports revealed the sudden cancellation of the talks, which had aimed to resolve trade disputes and deepen economic ties. The U.S. decision was unexpected, as just hours before the announcement, Indian Commerce Secretary Sunil Barthwal stated that India was "fully engaged with the U.S. in trade negotiations." The new tariffs will combine with existing duties, raising some to as high as 50% on key Indian goods. In response, Indian Prime Minister Narendra Modi reaffirmed his economic nationalism agenda during his Independence Day address on August 15, 2025. As part of the "Atmanirbhar Bharat" (Self-Reliant India) campaign, Modi unveiled plans to intensify domestic semiconductor production, with the expectation that chips will be ready by year-end. He also pledged tax reforms to provide relief for the middle class, an initiative aimed at countering dependence on foreign imports and addressing growing trade tensions with the U.S. The abrupt cancellation of the talks signals a significant deterioration in U.S.-India relations and could have global trade implications. While cooperation persists in specific sectors, geopolitical factors are increasingly driving the strain between the two nations.