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Congress MP Shashi Tharoor, head of the Parliamentary Standing Committee on External Affairs, said on Monday that if a meeting with Russia is followed by one with Ukraine, then the additional 25 per cent US tariff imposed on India will be removed. He was referring to US President Donald Trump's recent move to double the duty on goods imported into America from India to 50 per cent over India's oil trade relations with Russia. Tharoor highlighted that the additional 25 per cent duty was "in the context of war (between Russia and Ukraine)".
His remarks followed a briefing by the trade and external affairs ministries to the parliamentary panel, detailing developments in the country's foreign policy, including key aspects such as the potential impact and the steps undertaken to counter the recent changes in US trade policy as well as US-India trade negotiations.
India shares important relations with the US, with trade being only one of the topics of discussions, said Tharoor.
Earlier, the Tharoor-led committee had raised questions concerning India-US trade, including India's stance in trade negotiations and its foreign policy.
Last week, Prime Minister Narendra Modi spoke with Russian President Vladimir Putin amid India's worsening ties with the US over its oil trade with Russia. PM Modi and Putin discussed a range of topics during their interaction, including the Russian president's upcoming visit to India for the 23rd Annual India-Russia Summit, the strategic partnership between the two sides, and the Ukraine conflict.
Trump tariff hike to 50% with effect from August 28
Trump's trade policy has kept investors globally on edge, imposing the highest duty of 50 per cent on India and Brazil. The additional duty, in addition to the existing 25 per cen levy, is set to take effect from August 28.
Some analysts describe the 47th US president's move as the most serious downturn in US-India relations since the onset of his term in January.
The doubling of duty is set to impact Indian exporters significantly.
India-US trade | A summary
Last year, India's exports to the US amounted to nearly $87 billion, making America the Asian country's largest export market. Annual trade between both sides is recorded at more than $190 billion.
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A sharp drop in India's exports into the US could cause India’s GDP growth to slip below the RBI's annual forecast of 6.5 per cent, say some analysts.
The Ministry of External Affairs has described the tariff hike as “extremely unfortunate”, stating that India will take all necessary steps to protect its national interests.
English (US) ·