India and America have now reached the lowest level of several decades. India does not seem to get relief from the tariff imposed by US President Donald Trump. According to sources, on Saturday (August 16, 2025), India suffered a major setback when the US postponed the sixth round of the proposed bilateral trade agreement. This meeting was to be held in Delhi from 25 to 29 August. An American official said that the visit would probably be rescheduled later.

Sixth round postponed, shock to India
So far, five rounds of talks have been held between India and America regarding the trade deal. The sixth round of meeting was considered important, but due to its postponement, difficulties have increased for India. This delay will directly affect the tariff as the additional 25 percent penalty tariff i.e. 50 percent fees imposed by the US are going to be implemented from August 27.

American pressure on agriculture and dairy
The US wants it to get more markets in India’s agriculture and dairy sector. But India has made it clear that the interests of farmers will not be compromised. India is an agricultural country and if the American market interferes with the Indian agriculture sector, it will have a big impact on the farmers and the economy.

Future of trade
India and America have been a long time trade partner. The two countries have targeted that the first phase of bilateral trade deal will be completed by September-October 2025. Also, the plan is to increase bilateral trade by $ 500 billion by 2030. Currently, about $ 191 billion is being traded between the two countries.

Tariff’s effect
The US has imposed 25 percent tariff on India since August 7. Apart from this, due to purchasing crude oil and military equipment from Russia, an additional 25 percent punitive tariff has also been imposed on India, which will be applicable from August 27. This will affect both India’s exports and imports.

Indo-US business figures
According to the latest Commerce Ministry data, India’s exports to the US rose by 21.64% to $ 33.53 billion between April-July 2025. At the same time, imports from the US rose 12.33% to $ 17.41 billion during this period. During this period, America remained India’s largest trading partner.

Prime Minister of India Narendra Modi will probably talk to Brazilian President Luiz Enecio Lula da Silva on Thursday (7, August 2028) and is preparing to travel to China after 7 years in August. Both these steps have become even more important amidst deteriorating relations with America. Prime Minister Modi will go to Tianjin to attend the Shanghai Cooperation Organization (SCO) summit, where he will hold a bilateral meeting with President Xi Jinping, who returned from Moscow.

Conversation with lula
Brazilian President Lula Da Silva can talk to Modi over the phone to discuss the India-US trade war and the status of American tariff. Both of them had already fixed the time of conversation, but now it has become even more important, because Trump has imposed 50% tariffs on India and Brazil.

China Travel and SCO Conference
According to Bloomberg report, Prime Minister Modi will visit China in late August. He went here last time in 2018. He will take part in Tianjin in the meeting of the Shanghai Cooperation Organization (SCO), where he will meet Xi Jinping. This meeting is scheduled on 31 August and 1 September.

This diplomacy is important among America’s tariff
India has faced 50% tariffs when the Trump administration kept buying oil from Russia. India has made it clear that it will not stop purchasing from Russia for its energy security. India described Trump Tariff as “unjust”. Meanwhile, relations with BRICS countries like India, Brazil, China and Russia have become more important.

Other diplomatic activities
National Security Advisor Ajit Doval is currently in Russia’s capital Moscow. Foreign Minister S. Jaishankar’s visit to Russia was already decided. India is also preparing to invite Russian President Vladimir Putin later this year.