*

Trump imposes additional 25% tariff on India

*

Brazil's president sees no point in tariff talks with

Trump

*

Oil prices slide to 8-week low as US-Russia talks stir

sanction

uncertainty

*

Chile cenbank to accumulate $18.5 bln in international

reserves

(Updates with afternoon levels)

By Ragini Mathur, Johann M Cherian and Sukriti Gupta

Aug 6 (Reuters) -

Chile's peso declined the most among Latin American

currencies on Wednesday, after the local central bank unveiled

plans to boost international reserves, while investors were also

scrutinizing U.S. tariffs on India and Brazil.

In a move that surprised investors, U.S. President

Donald Trump unveiled an additional

tariff on Indian goods

, set to take effect 21 days after August 7. The new tariff

will push duties on some Indian exports as high as 50% - among

the steepest imposed on any U.S. trading partner.

Trump cited New Delhi's continued purchases of Russian

oil as the reason for the sharply increased tariff rate.

Indian markets closed before the news, but a U.S.-listed

iShares India ETF slipped 0.3% to a three-month low.

Depository receipts of Dr Reddy's Laboratories

lost 2.5% and those of Wipro and Infosys

dipped 1.5% and 0.9%, respectively.

On the currency front, the 1-month rupee forward

was last flat against the dollar.

"While markets have already started pricing in the risk

of a sharp tariff hike, a near-term knee-jerk reaction is

inevitable - unless there's swift clarity or a breakthrough in

negotiations," said Mayuresh Joshi, head of India equity

research at William O'Neil.

"India's crude oil imports have remained diversified ...

Russia is just one slice of our broader crude basket."

In Latin America, Brazil's real firmed 0.8%

against a weaker dollar and touched a near one-month high and

stocks gained 1.1% to hit a two-week high as 50% U.S.

tariffs on the country's exports took effect.

The U.S. enjoys a trade surplus with Brazil and top

export items from the South American country were exempted from

the duties last week. The BRICS group of countries has come

under greater scrutiny in recent weeks as Trump accused them of

pursuing "anti-American policies".

Brazil's President Luiz Inacio Lula da Silva

told Reuters

in an interview that he saw no room for direct talks with

U.S. President Donald Trump, which he believes would turn into a

"humiliation" for him.

Meanwhile, Chile's currency fell 0.7% after the

country's central bank

announced a three-year plan

to boost international reserves by $18.5 billion, aiming to

strengthen its holdings and reduce dependence on foreign credit

lines.

Citigroup moved to "underweight" on the Chilean peso in

its EM Bond Portfolio following the reserves program

announcement.

Mexico's peso firmed 0.7% ahead of an interest

rate decision by the domestic central bank on Thursday.

Elsewhere, Trump said his special envoy Steve Witkoff

had made "great progress" in his

meeting with

Russian President Vladimir Putin, two days before a

deadline set to impose new sanctions if no moves were made to

end the conflict with Ukraine.

Crude prices slid to an eight-week low on the sanction

uncertainty. The rouble had closed lower earlier on

Wednesday, while international bonds in Ukraine rose broadly.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

MSCI Emerging Markets 1245.62 -0.04

MSCI LatAm 2280.98 1.30

Brazil Bovespa 134637.97 1.12

Mexico IPC 57160.38 0.16

Chile IPSA 8245.78 0.62

Argentina Merval 2414240.1 2.9

3

Colombia COLCAP 1774.53 0.72

Brazil real 5.4648 0.77

Mexico peso 18.6127 0.66

Chile peso 973.03 -0.72

Colombia peso 4049.5 0.92

Peru sol 3.554 -

Argentina peso 1331

(interbank) 0.6

Argentina peso (parallel) 1300 -0.38