The United States and India are set to hold another round of trade talks in Delhi, after weeks of Donald Trump’s decision to raise duties on Indian goods, a move that pushed the country’s exports to a nine-month decline last month. According to Rajesh Agarwal, the chief negotiator in the commerce industry of India, both countries are prepared to fast-track the discussions.
Agarwal spoke at a briefing held during the announcement of the latest trade data, refusing to share further details. Brendan Lynch, the US trade delegate for South Asia, is also scheduled for a one-day trip to New Delhi, according to Agarwal. According to official numbers, merchandise exports dropped to $35 billion in August from $37 billion in the month before. The trade deficit dropped to $26 billion from $27 billion in July.
United States and India to hold new talks
The United States imposed an extra 25% duty on Indian products, a development that began on August 27, rounding up the total tariff on Indian exports to 50%. This development puts it in a ranking among the top rates faced by any United States partner. Sales to the US market also dropped to $6.86 billion in August from $8.01 billion in July. For the April-August period, India’s shipments to the United States reached $40.39 billion. Officials said the full hit from the higher duties will show up in next month’s figures, since the additional levy took effect toward the end of August.
The August data is the first full set of trade numbers since the United States announced a 25% levy on Indian goods on August 7, before doubling it 20 days later, citing New Delhi’s purchases of Russian oil. The duties rank among the steepest globally and risk eroding the price edge of Indian products against rivals in Bangladesh and Vietnam. However, there were signs of a thaw last week as President Trump and PM Modi agreed to restart trade negotiations.
India advances in EU trade talks
India is also pushing ahead with a trade agreement with the European Union. The next phase of negotiation is planned for October 6th-10th. The United States is India’s largest export destination, and the new tariff regime is expected to affect labour-intensive categories such as jewelry and textiles. Many exporters sped up deliveries before the higher duties kicked in.
According to the data, outbound shipments to the U.S. reached 40.39 billion US dollars from April to August, compared with 34.21 billion US dollars in the same period the previous year. To cut reliance on imports, the government has marked out around 100 products in which domestic manufacturing could be scaled up. Officials say the plan is part of a broader effort to steady trade flows while talks proceed with major partners, including the United States and the European Union.
