INDIA is holding trade discussions with the United States, an Indian government source said on Friday, a day after US president Donald Trump signed an order imposing a 25 per cent tariff on Indian exports.
Trump announced high import duties on several countries, including 35 per cent on goods from Canada, 50 per cent for Brazil, 20 per cent for Taiwan and 39 per cent for Switzerland, according to a presidential order.
A US delegation is expected to visit New Delhi later this month, the source said to Reuters.
"We remain focused on the substantive agenda that our two countries have committed to and are confident that the relationship will continue to move forward," India's foreign ministry said on Friday.
Trade talks between the two countries have been delayed over issues such as access to India's agriculture and dairy sectors.
The tariffs could affect nearly $40 billion worth of exports from India, the world's fifth largest economy, the source said.
Without an agreement, the tariffs would place India under stricter trade conditions than other major economies, potentially affecting its economy.
The source said India would not compromise on its agriculture and dairy sectors and would not allow dairy imports due to religious opposition to animal feed in such products.
On Wednesday, Trump also threatened more penalties on India over its commercial ties with Russia and its membership in the BRICS group. There is no clarity yet on these penalties. Trump accuses BRICS of following "anti-American policies".
A senior US official said on Thursday that differences between the two countries cannot be resolved quickly to reach a trade deal.
The US has a trade deficit of $46 billion with India.
(With inputs from Reuters)
