US-India commerce row: MEA official calls Donald Trump’s tariff hike a ‘unilateral determination’; says each side had been ‘very near an answer’ – Occasions of India


US President Donald Trump (AI picture)

A senior Indian diplomat on Thursday criticised the Donald Trump administration’s imposition of fifty per cent tariffs on Indian exports to the US, calling the transfer “unilateral” and missing any “logic or cause”, at the same time as he confirmed that bilateral commerce negotiations between the 2 sides would proceed.“This can be a unilateral determination. I do not suppose there’s any logic or cause in the best way it’s finished,” stated Dammu Ravi, secretary (financial relations), ministry of exterior affairs, chatting with reporters on the sidelines of the LIDE Brazil India Discussion board in Rio de Janeiro, as quoted by information company PTI.The remarks got here hours after US President Donald Trump signed an government order doubling import tariffs on Indian items to 50 per cent, citing New Delhi’s continued imports of discounted Russian oil as the rationale. The transfer is anticipated to severely have an effect on key sectors like textiles, marine merchandise, leather-based, and chemical substances.In its first official response, India referred to as the transfer “unfair, unjustified and unreasonable”, based on authorities sources.Regardless of the escalation, Ravi indicated that India would proceed to have interaction diplomatically. “Maybe, it is a part now we have to beat. The negotiations are nonetheless happening. So, we’re assured that options shall be discovered in the midst of time in taking a look at mutually useful partnerships,” he stated.In accordance with Ravi, India’s ministry of commerce is main the discussions with the US, and talks had made vital headway earlier than the tariff hike was introduced.“We had been very near discovering an answer, and I believe that momentum has taken a brief pause, however it’ll proceed,” he added.A US delegation is anticipated in India later this month for the sixth spherical of talks on a proposed bilateral commerce settlement (BTA). The 2 nations are hoping to conclude the primary part of the BTA by October–November.Downplaying the long-term affect of the tariffs, Ravi stated Indian trade was resilient and wouldn’t be derailed by the brand new duties.“The excessive tariff won’t have any detrimental affect on the Indian trade. It won’t pull again or derail India Inc,” he asserted.Ravi famous that nations typically search for different markets when confronted with tariff “partitions”, and stated India would now flip its consideration to geographies such because the Center East, Latin America, Africa and South Asia.“If the US turns into tough to export to, you’ll mechanically take a look at different alternatives,” he stated.Describing Trump’s transfer as a “short-term aberration”, Ravi expressed optimism that the state of affairs would stabilise with time and dialogue.“That is, in my opinion, a brief aberration, a brief drawback that the nation will face. In the midst of time, we’re assured that the world will discover options to it. Like-minded nations will search for cooperation and financial engagement that shall be mutually useful for all sides,” he stated.Ravi additionally addressed considerations in regards to the rising international momentum towards de-dollarisation. Although he denied any deliberate transfer to bypass the US greenback, he stated many nations had been now looking for alternate options for bilateral commerce as a consequence of a scarcity of exhausting forex post-Covid.“Work on this side is on bilaterally and on the Brics degree,” he famous.Trump’s government order, ‘Addressing Threats to the US by the Authorities of the Russian Federation’, imposes a further 25 per cent tariff on Indian items over and above the present 25 per cent levy. The primary layer of duties takes impact from August 7, with the extra 25 per cent kicking in from August 27.India at present imports round 88 per cent of its crude oil wants, and Russian oil, accessible at a reduction after the Ukraine struggle, has turn out to be the nation’s largest supply. As of July, 1.6 million barrels per day of India’s 5 million bpd crude imports got here from Russia.The brand new US obligation would make India the highest-taxed exporter to the US (at 50 per cent), alongside Brazil. As compared, tariffs on comparable items from rivals like Bangladesh (35 per cent), Vietnam (20 per cent), and China (30 per cent) stay considerably decrease.Commerce specialists imagine the tariff hike is a strain tactic by the US forward of the continuing BTA negotiations. Washington is looking for obligation concessions on electrical automobiles, dairy, wines, petrochemical merchandise, apples, tree nuts, genetically-modified crops, and extra.In 2024–25, bilateral commerce between India and the US stood at $131.8 billion, with Indian exports accounting for $86.5 billion.Regardless of the tensions, Ravi emphasised the strategic nature of the India-US partnership. “We now have a complementary relationship. Companies and leaders on each side are taking a look at commerce alternatives,” he stated.