India Stays Course on U.S. Trade Talks Despite 50% Tariff Blow
- U.S. raises total duty on Indian exports to 50% over New Delhi’s purchase of sanctioned Russian oil.
- India confirms sixth round of trade talks with U.S. from August 25 remains on schedule.
- New tariffs affect about 55% of India’s merchandise exports to the U.S., worth $87 billion in annual trade.
India remains committed to continuing trade negotiations with the United States, despite Washington’s decision to double tariffs on Indian exports to 50% in response to New Delhi’s purchase of sanctioned Russian oil, lawmakers said.
Last week, U.S. President Donald Trump imposed an additional 25% duty on Indian goods, adding to the existing 25% levy, making India one of the highest-taxed American trading partners. The move follows U.S. concerns over India’s continued imports of Russian crude in defiance of Western sanctions.
“Our relations with the U.S. are multi-dimensional, and should not be seen only through the prism of trade”, a lawmaker said, citing Foreign Secretary’s briefing to the parliamentary panel on foreign affairs.
Shashi Tharoor, opposition Congress leader and chair of the panel, confirmed that the sixth round of trade talks remains on schedule, with a U.S. trade delegation set to visit New Delhi from August 25.
Junior finance minister Pankaj Chaudhary told parliament that the new tariffs would affect about 55% of India’s merchandise exports to the U.S., based on the combined impact of the initial and additional levies. He said the commerce department is engaging with stakeholders to assess the impact.
Bilateral goods trade between the U.S. and India was valued at approximately $87 billion in the last fiscal year, government data shows. The U.S. is India’s largest export destination, while India is among America’s key trading partners in Asia.
Separately, the panel expressed concern over reported remarks by Pakistani army chief Field Marshal Asim Munir on nuclear threats in South Asia during a U.S. visit. “Nuclear blackmail will not work with India, and no party or representative disagrees with this view”, Tharoor said, adding that the external affairs ministry had strongly condemned the comments.
