
India hopeful of resolving Trump's tariff issue within 3 weeks
What's the story
India is optimistic about resolving the ongoing trade dispute with the US within the next three weeks, government sources told CNBC-TV18. The timeline has been set to allow for negotiations over additional tariffs imposed by US President Donald Trump on August 6. The tariffs, which are as high as 50%, were imposed on India over its imports of Russian oil amid the Ukraine war.
Negotiation goals
'21 days give space for negotiations'
The Indian government is hopeful of negotiating a solution that would be beneficial for both countries. The sources said, "21 days give space for negotiations to find a way around additional tariffs." They also emphasized that the larger framework of the Bilateral Trade Agreement (BTA) would be kept in mind during these discussions.
Tariff impact
US tariffs on India reach 50%
The additional ad valorem tariffs imposed by Trump have pushed the total US tariffs on India to a whopping 50%. This is among the highest in the world, with Brazil also facing similar tariffs from August 6. However, Indian officials believe that Russian oil purchases might not be the sole reason behind these tariff hikes.
Trade growth
Oil imports from US have increased by nearly 120%
The Indian government has highlighted that the country's oil imports from the US have gone up by nearly 120% in the last six months. This is part of a broader strategy where Indian Oil PSUs are buying crude oil from across the globe at competitive prices. The sources stressed taking a long-term view of the India-US partnership built over decades, especially in terms of energy trade.