India-US levy hotline remains open

New Delhi: India and the US have kept open the channels of communication between them to try and resolve the ongoing tariff discord, officials said. They reassured exporters that there was no reason for panic as this was a temporary phase in a long-term relationship between the two countries.The 50% tariff imposed by the US on Indian goods, barring a few sectors, came into effect August 27.The officials also said that negotiations on the proposed Bilateral Trade Agreement will depend on how each side addresses the other's sensitivities and red lines that can't be crossed. "The impact (of the tariffs) is unlikely to be as severe as feared given the diversified nature of Indian exports," said one of them. "It is a temporary phase in a long-term relationship."US treasury secretary Scott Bessent seemed to adopt a conciliatory tone, describing the India-US relationship as "very complicated," in a TV interview, while expressing the hope that "at the end of the day, we will come together." Farmers Interest India's exports to the US in the April-July period were robust but the next few months could see a dent in outbound shipments. "However, full-year exports would be similar to last year," the official said.The two sides have been negotiating the BTA since March and had aimed to conclude the first part of the accord by fall (autumn) this year. So far, five rounds of talks have been completed. The next round was to have begun in New Delhi on August 25 but the US team's visit was deferred in the wake of Donald Trump issuing his 50% diktat in retaliation against India's purchase of Russian oil. The US-India trade pact aims at more than doubling bilateral trade to $500 billion by 2030 from the current $191 billion."Ultimately, there are some red lines that we cannot overlook," said the official cited. "The deal is dependent upon how each party addresses those red lines. For us, it has been clearly spelt out."Prime Minister Narendra Modi has said he will protect the interests of farmers and fishermen and has championed the cause of swadeshi or local manufacturing. The government has said it will ensure that the national interest is safeguarded in all trade deals.The US has sought reduced tariffs on products such as corn, soyabean, apples, almonds and ethanol, as well as increased access for its dairy products. India has opposed these demands.