India pushes ahead with US trade talks despite tariff hike to 50%
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Goods trade between the US and India was worth about US$87 billion in the fiscal year ended March 2025.
PHOTO: BLOOMBERG
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NEW DELHI/MUMBAI – India hopes trade talks with the US will continue even as the US hiked tariffs on its exports to 50 per cent due to New Delhi’s purchase of sanctioned Russian oil, two lawmakers said on Aug 11, citing a briefing to a parliamentary panel on foreign affairs.
Last week, US President Donald Trump imposed an additional 25 per cent tariff on Indian goods
“Our relations with the US are multidimensional, and should not be seen only through the prism of trade,” one of the lawmakers said, citing the Indian foreign secretary’s briefing to the panel.
Mr Shashi Tharoor, an opposition Congress party leader, who heads the panel, said trade talks would continue.
“As of now, there is no change in the existing plans for the sixth round,” he said, referring to a scheduled visit of a US trade delegation to New Delhi from Aug 25.
Earlier, Minister of State for Finance Pankaj Chaudhary told lawmakers that about 55 per cent of India’s merchandise exports to the United States would be covered by the new tariff.
His estimate factored in the initial 25 per cent duty, he said in a written response to a lawmaker’s query.
The Department of Commerce “is engaged with all stakeholders” for their assessment of the situation, Mr Chaudhary added.
Goods trade between the US and India – the world’s biggest and fifth-largest economies respectively – was worth about US$87 billion (S$112 billion) in the fiscal year ended March 2025, according to Indian government estimates.
Separately, the panel voiced concerns over Pakistani army chief Asim Munir’s reported remarks on nuclear threats
“Nuclear blackmail will not work with India, and no party or representative disagrees with this view,” Mr Tharoor said, adding that the External Affairs Ministry had condemned the comments. REUTERS
