Union Minister of State for Commerce and Industry Jatin Prasada responded to a question on the effects of the US 50% tax by estimating that, based on 2024 trade value, about $48.2 billion of India’s item exports will be subject to duties.
“The Government is committed to securing and advancing the country’s national interest and protecting the welfare of farmers, workers, entrepreneurs, exporters, MSMEs, and all sections of industry,” he wrote in a written response to the Lok Sabha on Tuesday.
He also stated that all necessary steps are being taken to help mitigate impact on trade, including appropriately promoting exports and diversifying trade.
Trump imposed an extra 25% duty on Indian imports on August 6 in retaliation for New Delhi’s ongoing purchases of Russian oil. Trump imposed the additional duty on top of the 25 percent levy that went into force on August 7 through an executive order titled “Addressing Threats to the US by the Government of the Russian Federation.”
With the exception of a tiny exemption list, the overall tax on Indian items will be 50% starting on August 27 as a result of this ruling.
India has criticised the move. Officials referred to the actions as “unfair and unreasonable,” pointing out that other significant purchasers, such as the US, China, and the EU, still acquire Russian goods.
According to an official, a US team’s long-planned trip to New Delhi for trade talks has been canceled. For the sixth round of talks on a possible bilateral trade deal, the group, headed by Assistant US Trade Representative Brendan Lynch, was scheduled to arrive on August 25. The official stated, “A new date has not yet been decided.”
So far, five rounds of negotiations have been concluded. The sixth was anticipated to be significant since it coincided with the imposition of more US tariffs.
Senior Indian officials had previously declared that the nation was “fully engaged” with the United States through a variety of channels, such as discussions at the ministerial and business levels.
Although they called the United States a “very important trade partner,” they clarified that the August round’s status would only be revealed closer to the event date.
India has continued to make acquisitions in spite of pressure from the US. According to data, imports averaged 1.8 million barrels per day in the first half of August, higher than the 1.6 million barrels per day recorded in July.
The explanation came from a government source: “We are still purchasing Russian oil, but we are purchasing more from (the US) than previously. We are unable to halt it. Russian oil, the insider continued, makes “a lot of difference in terms of money.”
In his Independence Day speech, Prime Minister Narendra Modi also retaliated, stating unequivocally that India will not tolerate any trade agreement that jeopardizes the interests of cattle ranchers or farmers.