The US had announced a 25% secondary tariff on India on August 6 in response to New Delhi's continued purchase of Russian oil. These tariffs are set to take effect on August 27, and come in addition to the 25% reciprocal tariff previously announced on Aug 1.

But experts say India's refusal to reduce duties on agriculture and dairy products has been a major thorn in the negotiations. Trump's new 50% tariff rate on India is set to come into effect on 27 August, which some experts have said is akin to an embargo on trade between the two countries.

US President Donald Trump said the US may not add extra tariffs on India for buying Russian oil, leaving room for change of plans after India faced 50 per cent tariffs