NEW DELHI (Reuters) -India is engaged in trade talks with the United States after Washington imposed a 25% tariff on New Delhi, a move that could impact about $40 billion worth of the South Asian country's exports, an Indian government source with knowledge of the trade discussions told Reuters on Friday.

A delegation from the U.S. is expected to visit New Delhi later this month, the source added.

(Reporting by Manoj Kumar, writing by Tanvi Mehta; editing by Sudipto Ganguly)