NEW DELHI: The US and India have resumed trade talks, the two countries’ leaders announced on social media on Wednesday, an unexpected move after Donald Trump’s administration imposed 50 percent tariffs on Indian goods.
Since the beginning of his global trade war earlier this year, the US president has been promising a trade deal with India. Last month, however, he doubled the total duty on Indian exports, citing New Delhi’s continued purchases of Russian oil.
The tariffs — the highest in Asia and among the greatest ever imposed on a major trading partner by any American administration — have caused a rift in India-US ties. New Delhi’s Chief Economic Adviser V. Anantha Nageswaran estimated they could reduce India’s gross domestic product by half a percent this year alone.
After weeks of tensions, in which India was seen recalibrating its relations with China after a years-long standoff, Prime Minister Narendra Modi took to X on Wednesday morning to say that US and Indian teams were again engaged in talks.
“India and the US are close friends and natural partners,” he said.
