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.

The Alaska summit is now being seen as a critical juncture. A diplomatic breakthrough between Trump and Putin could cool Washington’s stance on India, while a collapse in talks risks triggering what officials describe as “secondary sanctions”, penalties aimed at punishing third countries that maintain business ties with targeted nations.