India is currently engaged in trade discussions with the United States, a government official confirmed on Friday—just a day after U.S. President Donald Trump imposed a 25% tariff on Indian exports.
The executive order also slapped new tariffs on several other countries, including 35% on Canadian goods, 50% on Brazilian imports, 20% on Taiwan, and 39% on Swiss products.
An American delegation is expected to visit New Delhi later this month, the Indian official added.
India’s foreign ministry expressed optimism in a statement, saying both countries remain committed to their trade agenda and believe the bilateral relationship will continue to progress.
Talks have faced delays due to disagreements over access to India’s agriculture and dairy sectors, which remain tightly regulated.
According to the source, Trump’s tariff move could impact around $40 billion in Indian exports. Without a resolution, India could face tougher trade conditions compared to other major economies—posing a threat to the economic stability of a key U.S. ally in Asia.
The official emphasized that India will not compromise on its agriculture and dairy sectors, particularly over religious concerns tied to animal feed in imported dairy products.
Additionally, Trump warned of further penalties over India’s ties with Russia and its membership in the BRICS alliance, which he claims promotes “anti-American policies.” No specifics on those penalties have been disclosed yet.
A senior U.S. official noted that resolving trade differences will take time and cannot happen overnight. Currently, the U.S. trade deficit with India stands at $46 billion.
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