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India seeks to keep US trade talks on track despite tariff hike

India seeks to keep US trade talks on track despite tariff hike

India hopes to press ahead with trade negotiations with the United States despite Washington’s decision to double tariffs on its exports to 50% in response to New Delhi’s continued purchase of sanctioned Russian oil, two lawmakers said on Monday.

The foreign affairs parliamentary panel was briefed on the matter by the foreign secretary after U.S. President Donald Trump last week imposed an additional 25% duty on Indian goods, making India one of America’s most heavily taxed trading partners.

“Our relations with the U.S. are multi-dimensional and should not be seen only through the prism of trade,” one lawmaker said. Panel chair Shashi Tharoor confirmed the sixth round of trade talks was still set to begin with a U.S. delegation visit to New Delhi on August 25.

Junior finance minister Pankaj Chaudhary told parliament that roughly 55% of India’s merchandise exports to the United States will be affected by the new levy, factoring in the initial 25% duty. He said the commerce department is consulting stakeholders to assess the impact.

Bilateral goods trade between the world’s largest and fifth-largest economies stood at about \$87 billion in the last fiscal year, according to Indian government data.

The panel also discussed remarks reportedly made by Pakistani army chief Field Marshal Asim Munir during a U.S. visit about nuclear threats in South Asia. “Nuclear blackmail will not work with India,” Tharoor said, adding the foreign ministry had condemned the comments.