India and the United States will hold trade talks on Tuesday, New Delhi said, raising hopes for a breakthrough weeks after President Donald Trump imposed punitive tariffs on the South Asian nation for buying Russian oil.

The move comes after Trump struck a more conciliatory tone in statements last week and expressed optimism that they could finalise a trade deal.

The US trade representative for South Asia, Brendan Lynch, will be in New Delhi for one day of talks, Indian chief negotiator Rajesh Agarwal said. The talks will be held as part of bilateral trade negotiations, Agarwal added without going into more detail.

Trump last month slapped a punitive 25% levy on India from August 27, doubling overall tariffs to 50%, as part of Washington’s efforts to step up pressure on Moscow over its invasion of Ukraine.

India’s exports to the United States fell to $6.86 billion in August from $8.01 billion in July, trade ministry data released on Monday showed.

Total goods exports fell to a nine-month low of $35.10 billion in August from $37.24 billion in July, while the trade deficit narrowed to $26.49 billion.

The full impact of higher tariffs from the United States on Indian goods imports will be felt next month as the punitive tariffs kicked in from August 27, exporters said.

New Delhi’s discord with Washington has coincided with increased contacts with Beijing. Prime Minister Narendra Modi visited China for the first time in seven years last month to attend a summit hosted by President Xi Jinping.

Modi was also seen holding hands with Russia’s President Vladimir Putin.

An earlier US visit to New Delhi, planned from August 25-29, was cancelled after talks hit major roadblocks, as New Delhi resisted opening its vast agricultural and dairy sectors.

But Sergio Gor, Trump’s nominee to be ambassador to India, said last week that the two sides were “not that far apart” on tariffs, and differences would be resolved in the next few weeks.