New Delhi — India has reaffirmed its commitment to ongoing trade negotiations with the United States, even in the wake of the U.S. imposing an unprecedented 50% tariff on Indian goods—a move triggered by India’s continued purchase of sanctioned Russian oil.
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Addressing a parliamentary panel, Lawmakers — including Shashi Tharoor, head of the panel — conveyed that the upcoming sixth round of trade talks, with a U.S. delegation scheduled to visit New Delhi on August 25, will proceed as planned.
Junior Finance Minister Pankaj Chaudhary noted that roughly 55% of India’s merchandise exports to the U.S. will be impacted by the new high tariffs, a figure that blends the initial 25% levy with the recent hike. Indian officials stressed that relations with the U.S. are multidimensional, involving security and diplomatic ties beyond trade.
Despite maintaining a willingness to negotiate, India is also drawing clear red lines — non-negotiable interests that it will not compromise on during talks. Meanwhile, economists like former RBI Governor Raghuram Rajan warn of the coercive nature of these tariffs, likening them to “negotiating with a gun to your head” and cautioning that such tactics could hinder meaningful agreement.
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Reuters’ Breakingviews commentary also suggests that India is exploring softer responses—potentially pausing defence procurement talks—to safeguard broader strategic relationships while preserving its autonomy.
In an evolving global backdrop, Brazil’s ambassador sees the U.S. tariffs as both a challenge and a catalyst for India to expand partnerships with like-minded nations.
Sources: Reuters, Arab News, Economic Times, Times of India
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