Trade discussions between India and the United States are set to take place in New Delhi on Tuesday, following President Donald Trump’s imposition of punitive tariffs on the South Asian country’s exports, which resulted in a decline in overall shipments to a nine-month low in August.
Rajesh Agarwal, India’s chief negotiator and a special secretary in its commerce ministry, informed reporters at a trade data release event that India and the United States will “accelerate” trade discussions, though he did not provide any specifics.
According to Agarwal, U.S. trade representative for South Asia Brendan Lynch will make a one-day trip to New Delhi on Tuesday.
In August, India’s exports declined to $35.10 billion from $37.24 billion in July, while its trade deficit reduced to $26.49 billion, down from $27.35 billion in July.
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The U.S. implemented an extra 25% tariff on Indian products due to New Delhi’s ongoing acquisitions of Russian oil beginning August 27, raising the total on Indian exports to 50%, one of the highest rates for any U.S. trade partner.
Exports to the United States dropped to $6.86 billion in August, down from $8.01 billion in July. Shipments from New Delhi to Washington from April to August amounted to $40.39 billion.
The complete effect of increased tariffs from the United States on imports of Indian goods will be experienced next month, as the punitive tariffs began on August 27.
