India’s Exports Hit 9-Month Low as US Tariffs Rise, Trade Talks in Delhi Aim to Reset Strained Ties

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India and the United States are once again trying to move forward on trade. Donald Trump’s close aide Peter Navarro said that India is “coming to the table” for talks, adding fresh hope for progress after months of friction. His remarks came just before US negotiator Brendan Lynch reached Delhi for a one-day discussion on a possible trade deal.

Positive Signals From Leaders

Navarro praised Prime Minister Narendra Modi’s recent message calling the US a “close friend and natural partner.” Modi said that the partnership between the two countries has limitless potential and stressed that the teams must conclude talks quickly. Trump also spoke in a positive tone on social media, saying he looks forward to working with Modi and reaching a deal that benefits both nations.

Even as both leaders spoke about friendship, Navarro repeated old concerns. He called India the “Maharaja of tariffs” and said the country has some of the highest duties and barriers in the world. He argued that these practices hurt American workers and businesses. Navarro also raised a sharp point on India’s purchase of Russian oil, claiming it gives Moscow funds to fuel the Ukraine war.

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Navarro renewed these complaints while noting broad strains caused by India’s continued purchase of Russian oil since 2022.

Trade tensions escalated when the US imposed an additional 25% tariff on Indian imports from August 27. That move raised the total US duty to 50% on many Indian goods. The increase came as a response to India’s ongoing dealings in Russian oil.

India’s exports to the US dropped sharply in August. They fell from about $8.01 billion in July to $6.86 billion in August. Overall exports also weakened, hitting their lowest in nine months.

Challenges and Next Steps

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The backdrop of these talks is tense. The United States recently increased tariffs on Indian goods, taking the rate to 50% on a few products. This hit Indian exports, which fell in August to their lowest level in nine months. Many in Delhi believe the time has come to reset ties and ease the pressure on trade.

India’s chief negotiator Rajesh Agarwal said that the meeting in Delhi is not officially the sixth round of talks but a step toward it. He explained that both sides have been speaking weekly online, but progress has been slow. With Lynch in Delhi, the talks may now shape the future course of negotiations.

For India, these talks matter for the big picture, meaning the US-India relationship. The two countries are already partners in areas such as technology and defence. For Washington, the goal is fairer access to Indian markets and a cut in high tariffs. For New Delhi, the aim is to reduce pressure from rising duties and keep the partnership steady while balancing ties with Russia.

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Despite strong words from Navarro, the tone from Modi and Trump points to a chance of common ground. Both countries now face the test of turning this window of hope into a workable trade agreement.