India pushes ahead with US trade talks despite tariff hike to 50%

NEW DELHI/MUMBAI: India hopes trade talks with the U.S. will continue even as the U.S. hiked tariffs on its exports to 50% due to New Delhi's purchase of sanctioned Russian oil, two lawmakers said on Monday, citing a briefing to a parliamentary panel on foreign affairs.

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The US imposed a 50% tariff on Indian exports due to India's continued oil trade with Russia.
Indian officials stress that US-India relations are broader than trade and plan to continue negotiations.
Lawmakers also condemned reported nuclear threats from Pakistan's army chief during his US visit.

Last week, President Donald Trump imposed an additional 25% tariff on Indian goods due to Delhi's continued purchase of Russian oil, bringing the total duty on Indian exports to the U.S. to 50% - among the highest of any American trading partner.

"Our relations with the U.S. are multi-dimensional, and should not be seen only through the prism of trade," one of the lawmakers said, citing the foreign secretary's briefing to the panel.

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 U.S. trade delegation to New Delhi from August 25.

Earlier, junior finance minister, Pankaj Chaudhary told lawmakers that about 55% of India's merchandise exports to the United States would covered by the new tariff.

His estimate factored in the initial 25% levy, 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, Chaudhary added.

Goods trade between the United States and India - the world's biggest and fifth-largest economies, respectively - was worth about $87 billion in the last fiscal year, according to Indian government estimates.

The panel separately voiced concerns over Pakistani army chief Field Marshal Asim Munir's reported remarks on nuclear threats in South Asia during a visit to the U.S.

"Nuclear blackmail will not work with India, and no party, or representative disagrees with this view," Tharoor said, adding the external affairs ministry had condemned the comments.