India and US to hold trade talks, raising hopes for reset

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Indian Prime Minister Narendra Modi (left) meeting US President Donald Trump at the White House in the US on Feb 13.

PHOTO: REUTERS

NEW DELHI – India and the United States will hold trade talks on Sept 16, 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 Mr Trump struck a more conciliatory tone in statements last week and expressed optimism that they

could finalise a trade deal

The US trade representative for South Asia, Mr 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, Mr Agarwal added without going into more detail.

Mr Trump in August slapped a punitive 25 per cent tariff on India from Aug 27,

doubling overall tariffs to 50 per cent

India’s exports to the United States fell to US$6.86 billion (S$8.8 billion) in August from US$8.01 billion in July, trade ministry data released on Sept 15 showed.

Total goods exports fell to a nine-month low of US$35.10 billion in August from US$37.24 billion in July, while the trade deficit narrowed to US$26.49 billion.

The full impact of higher tariffs from the United States on Indian goods imports will be felt in October as the punitive tariffs kicked in from Aug 27, exporters said.

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