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Trump met Modi at Washington DC on 13 February.
Negotiations can be postponed between India and the US regarding bilateral trade agreement (BTA). It was to be held from 25 to 29 August. According to PTI, now this meeting is likely to be held later.
So far, five rounds of talks for this agreement have been completed, the American team was to come to India for the sixth round.
Earlier, the US had announced a total of 50% tariff on India on 6 August. The US is demanding more market access to agriculture and dairy areas, but India has denied it.
India has clearly stated that it will not compromise the interests of farmers and cattle ranchers. The two countries are planning to complete the first phase of BTA by September-October 2025.
During the meeting at Washington DC in February, Trump and Modi targeted to double the bilateral trade by 2030.
Dispute between India and US over dairy products
The US wants its dairy products such as milk, cheese, ghee to be imported into India. India is the largest milk producing country in the world and crores of small farmers are engaged in this sector.
The Indian government is afraid that if American dairy products come to India, they can cause huge damage to local farmers. Apart from this, religious sentiments are also attached.
In the US, cows are added to animal bones (eg ranet) to their food for better nutrition. India considers the milk of such cows as ‘non -veg milk’ ie non -vegetarian milk.
India’s condition is that any dairy product can only be sold in India when it is proved that it is made from a vegetarian source.
India said- will compromise on interests
On Independence Day, Prime Minister Narendra Modi had reiterated the resolve to promote ‘indigenous’ products and protect the interests of farmers, fishermen and cattle ranchers.
He said, “India will not compromise on the interests of its farmers and cattle ranchers.”
Target to $ 500 billion by 2030 by 2030
India and the US aims to increase bilateral trade from the current $ 191 billion to $ 500 billion by 2030.
According to Commerce Ministry data, India’s exports to the US increased by 21.64% to $ 33.53 billion in April-July 2025, while imports increased by 12.33% to $ 17.41 billion.
The US was India’s largest trading partner during this period, with a trade of $ 12.56 billion. India’s exports to the US have been continuously increasing since April.
Trump said- no restriction on Russian oil purchase
Meanwhile, on Friday late night, a meeting was held in Alaska on the Ukraine issue between US President Trump and Russian President Putin. This meeting was expected to provide relief in additional fees on India due to reduced tension between the two countries.
Trump said, “If I had to ban, I will impose, but maybe I don’t have to do it.” He also said that India buys about 40% oil from Russia, losing its big customer from Russia with extra tariffs on India.
Total 50% tariff on India
US President Trump announced to impose 25% extra tariff on India on 6 August. This order will be applicable from August 27.
The executive order states that this action has been taken on India due to Russian oil purchases. Earlier, he announced 25% tariff on India on 30 July. Now India will have a total of 50% tariff.
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