US-India trade row: MEA official calls Donald Trump’s tariff hike a ‘unilateral decision’; says both sides were ‘very close to a solution’

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 reason”, whilst he confirmed that bilateral trade negotiations between the 2 sides would proceed.“This is a unilateral decision. I don’t think there is any logic or reason in the way it is done,” mentioned Dammu Ravi, secretary (financial relations), ministry of exterior affairs, talking to reporters on the sidelines of the LIDE Brazil India Forum in Rio de Janeiro, as quoted by information company PTI.The remarks got here hours after US President Donald Trump signed an govt 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 compounds.In its first official response, India referred to as the transfer “unfair, unjustified and unreasonable”, in accordance to authorities sources.Despite the escalation, Ravi indicated that India would proceed to interact diplomatically. “Perhaps, this is a phase we have to overcome. The negotiations are still going on. So, we are confident that solutions will be found in the course of time in looking at mutually beneficial partnerships,” he mentioned.According to 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 were very close to finding a solution, and I think that momentum has taken a temporary pause, but it will continue,” he added.A US delegation is anticipated in India later this month for the sixth spherical of talks on a proposed bilateral trade settlement (BTA). The two nations are hoping to conclude the primary part of the BTA by October–November.Downplaying the long-term affect of the tariffs, Ravi mentioned Indian business was resilient and wouldn’t be derailed by the brand new duties.“The high tariff will not have any detrimental impact on the Indian industry. It will not pull back or derail India Inc,” he asserted.Ravi famous that nations typically search for various markets when confronted with tariff “walls”, and mentioned India would now flip its consideration to geographies such because the Middle East, Latin America, Africa and South Asia.“If the US becomes difficult to export to, you will automatically look at other opportunities,” he mentioned.Describing Trump’s transfer as a “temporary aberration”, Ravi expressed optimism that the scenario would stabilise with time and dialogue.“This is, in my view, a temporary aberration, a temporary problem that the country will face. In the course of time, we are confident that the world will find solutions to it. Like-minded countries will look for cooperation and economic engagement that will be mutually beneficial for all sides,” he mentioned.Ravi additionally addressed issues concerning the rising world momentum towards de-dollarisation. Though he denied any deliberate transfer to bypass the US greenback, he mentioned many nations were now in search of options for bilateral trade due to a scarcity of laborious forex post-Covid.“Work on this aspect is on bilaterally and at the Brics level,” he famous.Trump’s govt order, ‘Addressing Threats to the US by the Government of the Russian Federation’, imposes an extra 25 per cent tariff on Indian items over and above the present 25 per cent levy. The first layer of duties takes impact from August 7, with the extra 25 per cent kicking in from August 27.India at the moment imports round 88 per cent of its crude oil wants, and Russian oil, out there at a low cost after the Ukraine warfare, has turn into 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 new US responsibility would make India the highest-taxed exporter to the US (at 50 per cent), alongside Brazil. In comparability, tariffs on comparable items from rivals like Bangladesh (35 per cent), Vietnam (20 per cent), and China (30 per cent) stay considerably decrease.Trade specialists imagine the tariff hike is a strain tactic by the US forward of the continuing BTA negotiations. Washington is in search of responsibility concessions on electrical autos, dairy, wines, petrochemical merchandise, apples, tree nuts, genetically-modified crops, and extra.In 2024–25, bilateral trade between India and the US stood at $131.8 billion, with Indian exports accounting for $86.5 billion.Despite the tensions, Ravi emphasised the strategic nature of the India-US partnership. “We have a complementary relationship. Businesses and leaders on both sides are looking at trade opportunities,” he mentioned.