'No cause for panic': India-US tariff issue manageable, say govt sources; impact unlikely to be 'severe'

NEW DELHI: Government sources on Wednesday said there is "no cause for panic" over the 50% tariffs imposed by the US on Indian goods, adding talks remain open between the two sides to resolve the issue.

"The impact (of the tariffs) is unlikely to be as severe as feared given the diversified nature of Indian exports," PTI reported, quoting sources, adding that the communication lines are open between India and the US to resolve the issue.The sources further said that the impact of the duties, effective from August 27, is "unlikely to be as severe as feared" given the diversified nature of India’s export basket. The exporters should not be alarmed, the sources said, describing the tariff move as "a temporary phase in a long-term partnership" between New Delhi and Washington.The Trump administration's sweeping duties cover several key sectors, including textiles, gems and jewellery, leather, shrimp, chemicals, and machinery, prompting India to weigh countermeasures while pursuing diplomatic options to limit the impact.