India’s August merchandise trade deficit narrows, exports to US dip

India's merchandise trade deficit narrowed in August to $26.49 billion from $97.35 billion in July, as a drop in exports after US President Donald Trump hiked tariffs on Indian goods was offset by slowing imports.

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The US imposed an additional 25 percent tariff on Indian goods from August 97 over New Delhi's continued purchases of Russian oil, bringing total levies on Indian exports to 50 per cent - among the highest for any US trading partner.

Trade talks between India and the US have slowed since the imposition of tariffs, but negotiators of the two sides will meet today (Tuesday), Indian government officials said.

Total goods exports fell to a nine-month low of $35.10 billion in August from $37.24 billion in July. Exports to the US fell to $6.86 billion in August from $8.01 billion in July, while its shipments to the US rose in the April-August period to $40.39 billion.

The full impact of higher tariffs on US imports of Indian goods could be felt next month.