US Tariff Hike on Indian Goods a Unilateral Move Lacking Logic: Indian Official

One day after the United States increased tariffs on Indian imports to 50%, a top Indian diplomat condemned the action as an irrational and unilateral move.

In a statement on Thursday, Dammu Ravi, India's Secretary of Economic Relations in the Ministry of External Affairs, expressed concerns over the absence of logic behind Washington's new trade action.

This is a one-way decision. I don't see any logic or sense in the manner it is done," Ravi said in an event to reporters.

In spite of the shocking increase, Ravi mentioned that India-U.S. talks continue. "Maybe, this is something we have to transcend. The talks are still on. So, we are hopeful solutions will be found in the course of time in considering mutually beneficial alliances," he added.

The Indian side is being led by the Ministry of Commerce, Ravi said. He sounded optimistic, indicating that both countries had almost settled before this recent hitch. "We were very close to a solution, and I think that momentum has been paused temporarily, but it will resume," he said.

He also minimized the effect of the hike in tariffs on Indian industry, saying that the domestic industry is still robust. "It will not retreat India Inc.," Ravi assured.

He went on to stress that nations hit by tariff "walls" would, of course, seek to diversify their trade links. "If the US is getting tricky to export to, you will naturally look elsewhere," Ravi said, mentioning the Middle East, Latin America, Africa, and South Asia as possible alternative markets.

Realizing that the consequences of the trade policies of the U.S. administration have started to be felt by the entire world, Ravi was optimistic that there would be a settlement. "This is, in my opinion, a temporary deviation, a temporary issue that the nation will experience. In due time, we are sure that the world will overcome it. Like-minded nations will seek collaboration and economic interaction that will be mutually beneficial to all parties," he said.

The hike in tariffs came on the heels of a midnight executive order by President Donald Trump on Wednesday, which added an extra 25% duty on Russian oil imports from India. This brought the overall tariff load on Indian imports to 50%, surprising New Delhi.