NEW DELHI: India and the United States are set to hold trade talks in New Delhi on Tuesday, just weeks after US President Donald Trump imposed punitive tariffs on Indian exports, slowing the country’s overall shipments to a nine-month low in August.
Rajesh Agarwal, India’s chief trade negotiator and a special secretary in the commerce ministry, said the two countries would “fast-track” negotiations. However, he did not provide further details during remarks at a trade data release event, Reuters news agency reported on Monday.
“US Trade Representative for South Asia Brendan Lynch is set to make a one-day visit to New Delhi on Tuesday,” Agarwal said.
India’s exports declined to $35.10 billion in August, down from $37.24 billion in July, while the trade deficit narrowed slightly to $26.49 billion from $27.35 billion the previous month.
The drop comes after the United States imposed an additional 25 percent tariff on Indian goods starting August 27, in response to New Delhi’s continued purchases of Russian oil. This brought the total tariff on some Indian exports to 50 percent—one of the highest rates imposed on any US trading partner.
As a result, India’s exports to the US fell to $6.86 billion in August, compared to $8.01 billion in July. Between April and August, Indian shipments to the US totaled $40.39 billion. The full impact of the increased tariffs is expected to be reflected in the trade data for the coming month.
Trump has repeatedly voiced frustration at India’s purchase of Russian oil, which surged after the war in Ukraine.
“I’ve been very disappointed that India would be buying so much oil from Russia, and I let them know that. We put a very big tariff on India, 50 percent tariff, very high tariff,” Trump said, noting that trade talks were nonetheless progressing.
However, earlier this month Donald Trump described ties between the United States and India as “special” and reaffirmed his friendship with Prime Minister Narendra Modi, a day after saying that Washington had “lost India and Russia to deepest, darkest, China.”
