US President Donald Trump on Tuesday said he feels “certain” that Washington and Delhi will come to a “successful conclusion” in trade talks and he looks forward to speaking with his "very good friend” Prime Minister Narendra Modi in the coming weeks.
Trump says there will be no difficulty in trade talks
"I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!” Trump said.
Taking to social media, Trump said he was "pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations."
US imposed 50% tariff on Indian goods
It should be noted that the Trump administration on August 7 enforced a 25 per cent tariff on Indian goods, citing India's persistent oil imports from Russia and long-standing trade barriers. Later, it imposed an additional 25% tariff, bringing the total duties imposed on New Delhi to 50 per cent.
The sectors which are impacted due to high import duties include labour-intensive segments such as textiles/ clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery. However, sectors such as pharma, energy products and electronic goods are out of the ambit of these sweeping duties.
Here’s what FM Sitharaman said on US tariffs
Earlier this week, India said that the government is working on a comprehensive package to support Indian exporters impacted by a steep 50 per cent tariff imposed by the US. In this regard, Union Finance Minister Nirmala Sitharaman said that a multi-departmental engagement is underway to assess the impact on Indian shipments.
In an interview with PTI, Sitharaman had said that various industries are sharing the impact with the concerned departments or ministries as the second part (25 per cent) of the tariff kicked in from August 27.
"So, we are getting their inputs. Something is being worked out to do some hand-holding for those exporters who have been affected by the US tariff of 50 per cent," she said.
She added, "Till the time we get that assessment, how can we assume how much the impact is? So every respective ministry is speaking to their stakeholders and asking for an assessment of 'Kitne Tak Apke Upar Iska Asar Padega' (how much will be the impact). We will have to see," she said.
The tariffs - among the highest in the world - include a 25 per cent penalty for buying crude oil from Russia. The US accounted for about 20 per cent of India's USD 437.42 billion worth of goods exports in 2024-25. The US has been the largest trading partner of India since 2021-22. In 2024-25, the bilateral trade in goods stood at USD 131.8 billion (USD 86.5 billion exports and USD 45.3 billion imports).
(With inputs from agencies)
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