India’s trade deficit rose to a three-month high of 34.68 billion dollars in January, according to data released by the country’s commerce ministry. The increase was driven by a 12 percent rise in imports to 71.24 billion dollars, largely due to higher gold and silver imports, while exports fell 5 percent to 36.56 billion dollars. Economists had expected the deficit to be around 26 billion dollars based on the previous month’s figure of 25.04 billion dollars.

The widening deficit comes as India prepares to send a delegation to Washington next week to finalize a trade deal aimed at reducing U.S. tariffs on Indian goods. The Trump administration had imposed a 50 percent tariff on Indian exports, which officials say will drop to 18 percent this week. President Donald Trump earlier confirmed the reduction, bringing relief to exporters and policymakers.

Commerce Secretary Rajesh Agarwal told Reuters that the delegation’s visit is intended to conclude the trade agreement. Trump also stated that India has pledged to cut oil imports from Russia and increase purchases of U.S. goods more than twofold.