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17-09-2025
Bureau Report + Agencies
NEW DELHI/ WASHINGTON: India and the United States will hold trade talks on Tuesday, New Delhi said, raising hopes for a breakthrough weeks after President Donald Trump imposed punitive tariffs on the South Asian nation for buying Russian oil.
The move comes after Trump struck a more conciliatory tone in statements last week and expressed optimism that they could finalize a trade deal.
The US trade representative for South Asia, Brendan Lynch, will be in New Delhi for one day of talks, Indian chief negotiator Rajesh Agarwal said. The talks will be held as part of bilateral trade negotiations, Agarwal added without going into more detail.
Trump last month slapped a punitive 25% levy on India from August 27, doubling overall tariffs to 50%, as part of Washington’s efforts to step up pressure on Moscow over its invasion of Ukraine.
India’s exports to the United States fell to $6.86 billion in August from $8.01 billion in July, trade ministry data released on Monday showed.
Total goods exports fell to a nine-month low of $35.10 billion in August from $37.24 billion in July, while the trade deficit narrowed to $26.49 billion.
The full impact of higher tariffs from the United States on Indian goods imports will be felt next month as the punitive tariffs kicked in from August 27, exporters said.
New Delhi’s discord with Washington has coincided with increased contacts with Beijing. Prime Minister Narendra Modi visited China for the first time in seven years last month to attend a summit hosted by President Xi Jinping.
Modi was also seen holding hands with Russia’s President Vladimir Putin.
An earlier U.S. visit to New Delhi, planned from August 25-29, was cancelled after talks hit major roadblocks, as New Delhi resisted opening its vast agricultural and dairy sectors but Sergio Gor, Trump’s nominee to be ambassador to India, said last week that the two sides were “not that far apart” on tariffs, and differences would be resolved in the next few weeks.
India’s merchandise trade deficit narrowed in August to $26.49 billion from $27.35 billion in July, as a drop in exports after US President Donald Trump hiked tariffs on Indian goods was offset by slowing imports.
The US imposed an additional 25% tariff on Indian goods from August 27 over New Delhi’s continued purchases of Russian oil, bringing total levies on Indian exports to 50% among the highest for any US trading partner.
Trade talks between India and the US have slowed since the imposition of tariffs, but negotiators of the two sides will meet on Tuesday, Indian government officials said.
Total goods exports fell to a nine-month low of $35.10 billion in August from $37.24 billion in July. Exports to the US fell to $6.86 billion in August from $8.01 billion in July, while its shipments to the US rose in the April-August period to $40.39 billion.
The full impact of higher tariffs on US imports of Indian goods could be felt next month.
Total goods imports fell to $61.59 billion from $64.59 billion, the data released by the commerce ministry showed.
India’s merchandise trade deficit in August was higher than economists’ forecast of $25.13 billion in a media poll.
The government estimated services exports in August at $34.06 billion and imports at $17.45 billion, suggesting a total goods and services trade deficit at $9.88 billion.
The central bank releases monthly services trade data after a one-month lag, following government estimates.
