India, US to Hold Trade Talks in New Delhi Amid Tariff Dispute
New Delhi
India and the United States are set to hold high-level trade talks in New Delhi on Tuesday, just weeks after Washington imposed additional tariffs on Indian exports, raising concerns over the country’s shipment slowdown.
According to Rajesh Agarwal, India’s chief negotiator and special secretary in the commerce ministry, the two sides will look to “fast-track trade discussions” during the meeting. The talks will be attended by US Trade Representative for South Asia Brendan Lynch, who is scheduled for a one-day visit to the Indian capital.
Export Performance and Trade Gap
India’s exports fell to $35.10 billion in August, down from $37.24 billion in July, marking a nine-month low. Meanwhile, the country’s trade deficit narrowed slightly to $26.49 billion, compared to $27.35 billion in July.
Shipments to the United States saw a sharper decline, dropping to $6.86 billion in August from $8.01 billion in July. Between April and August, exports to Washington totaled $40.39 billion.
Tariff Concerns
On August 27, the United States imposed an additional 25% tariff on Indian goods over New Delhi’s continued purchases of Russian oil. This move has taken the total tariff level on Indian exports to 50% — among the highest for any US trading partner.
Experts say the full impact of the tariff hike on Indian exports will become clearer in the coming months.
Looking Ahead
Both governments are expected to discuss ways to reduce trade barriers and restore growth in bilateral trade flows. Industry observers hope the dialogue will help stabilize economic ties and protect exporters from further disruptions.
