India-U.S. Trade Relations

NEW DELHI/MUMBAI (Reuters) – India aims to sustain trade discussions with the U.S. despite the latter raising tariffs on Indian exports to 50% due to India’s acquisition of sanctioned Russian oil, two lawmakers reported after a parliamentary foreign affairs panel briefing.

Last week, President Donald Trump implemented an additional 25% tariff on Indian products linked to India’s ongoing purchase of Russian oil, increasing the total tariff on Indian exports to the U.S. to 50%, one of the highest rates among American trading partners.

“Our relations with the U.S. are multi-dimensional and should not be viewed solely through a trade lens,” one lawmaker quoted the foreign secretary.

Shashi Tharoor, an opposition Congress party leader who leads the panel, stated that trade negotiations would persist. “Currently, there are no alterations to the existing plans for the sixth round,” he referred to the U.S. trade delegation’s scheduled visit to New Delhi on August 25.

Earlier, junior finance minister Pankaj Chaudhary informed lawmakers that approximately 55% of India’s merchandise exports to the U.S. would be impacted by the new tariffs. His assessment included the initial 25% levy, he noted in a written response.

“The Department of Commerce is engaging with all stakeholders” to evaluate the circumstances, Chaudhary added.

The trade of goods between the U.S. and India, the largest and fifth-largest economies in the world, was valued at about $87 billion in the previous fiscal year, according to Indian government data.

The panel also expressed concerns over remarks made by Pakistani army chief Field Marshal Asim Munir regarding nuclear threats in South Asia during his U.S. visit. “Nuclear blackmail will not work with India, and no party or representative disagrees with this view,” Tharoor asserted, emphasizing that the external affairs ministry condemned those comments.