Tariff fix key to trade deal with US: Govt

Multi-pronged strategy in the works to help exporters

- SHREYA NANDI

New Delhi remains hopeful of resuming trade deal negotiations with Washington, though resolving the issue of the United States' steep 50 per cent tariff on Indian exports will be essential before any agreement can be struck, a senior government official said on Thursday.

"We are hopeful to get back on the table soon... whenever we strike a deal, both the tariffs (the 25 per cent reciprocal levy and the punitive 25 tariff for India's purchases of Russian oil) need to be addressed. It doesn't need to be at the same exact time; it can be done in multiple ways. But addressing both is necessary to have an effective trade deal on the day," the official said.

Another round of trade talks, scheduled for August 25, was postponed by the American side. New dates are yet to be set.

"In the overhang of this additional tariff, it was not practical to have an official-level discussion... that overhang is there and the dates have been pushed," the official said.

Both sides, however, remain engaged and are seeking to better understand each other's concerns.