Centre looks for rollback of 50% additional duty by US

NEW DELHI: Government is looking for a rollback of the 50% additional tariff imposed by American President Donald Trump on Indian exports, while hoping to resume talks for a bilateral trade deal with the US soon, a senior official said Thursday.While communication channels are open, no fresh dates for talks for the bilateral deal have been finalised, for which Trump and PM Narendra Modi had set Fall (Sept-Oct) deadline. "We have not finalised new dates because of the overhang of this additional tariff... Both (25% reciprocal tariff and 25% penal duty) need to be resolved to strike the deal," the official said, while adding that engagements with the US on other fronts were going on.Days after Trump announced the tariffs, a team of American negotiators had postponed their visit to India for the sixth round of talks, which were scheduled to begin on Aug 25. "We are engaged. India and the US are complementary economies and both countries need to reach a deal, but a deal which is a win-win proposition, and which is in the national interest of both the countries," said the official.He added that govt's stand against lowering duties for agriculture and dairy products and allowing genetically modified food into the country has been appreciated, although tariffs may impact sectors, such as textiles, chemicals, gems and jewellery and leather and footwear.

He, however, added that "the supply chain will find its own level", although it was not possible for it to be reworked overnight.The expected disruption has also raised demands for retaliatory action by India, which was ruled out at least for the time being. "Negotiations and retaliation cannot go hand in hand. Right now, the talks are only postponed, it has not been taken off the table. So, why should we be worried? Retaliation is something which we can do at any point of time."At WTO, India has reserved its rights to impose retaliatory duties on American goods in response to higher levies on steel, aluminium, automobiles and auto components exports from the country. There is so far no move on the 50% tariffs imposed on all other Indian exports.While the US has flagged oil imports from Russia as the main reason for the additional 25% levy, govt has maintained that its purchases would be guided by national interest and countries are free to meet their energy requirements from anywhere.