Despite tariff hike, India-US trade talks remain on track: Tharoor
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New Delhi: Despite the United States imposing a 50% tariff on Indian exports due to India’s purchase of Russian oil, Indian officials remain optimistic that trade negotiations between the two countries will continue as planned.
Congress MP Shashi Tharoor, who heads the parliamentary panel on foreign affairs, stated on Monday that trade talks will proceed without disruption. Citing a briefing from the foreign secretary, Tharoor said, “Our relations with the U.S. are multi-dimensional, and should not be seen only through the prism of trade. As of now, there is no change in the existing plans for the sixth round,” according to a Reuters report.
Earlier, junior finance minister Pankaj Chaudhary informed other parliamentarians that the newly imposed tariff affects approximately 55 per cent of India’s exports to the U.S. He explained that this estimate includes the initial 25 per cent levy, and said the Department of Commerce is currently assessing the impact by engaging with all stakeholders.
The US government, led by President Donald Trump, had previously announced a 25% import tariff on Indian goods. This has now been increased by an additional 25 per cent penalty, citing India’s continued trade with Russia and its imports of arms and oil from the country.
India’s Ministry of External Affairs condemned the move, calling it “extremely unfortunate.” It argued that the US is unfairly targeting India, noting that several other nations are also maintaining trade relations with Russia to safeguard their national interests.
