PTI New Delhi

There is no logic or reason behind the Trump administration's "unilateral" move to impose 50 per cent tariffs on Indian exports to the US, a senior Indian diplomat said on Thursday. Negotiations between the US and India continue even after the move, Secretary, Economic Relations, Ministry of External Affairs, Dammu Ravi told reporters hours after Washington doubled the tariffs on Indian goods. 

"This is a unilateral decision. I don't think there is any logic or reason in the way it is done," Ravi told reporters on the sidelines of the LIDE Brazil India Forum here. "Perhaps, this is a phase we have to overcome. The negotiations are still going on. So, we are confident that solutions will be found in the course of time in looking at mutually beneficial partnerships," he said. In its first reaction to the move, India called it "unfair, unjustified and unreasonable".

Ravi said the Ministry of Commerce is leading the negotiation from the Indian side, and some solutions were in sight when Trump moved in with the executive order, hiking the tariffs. "We were very close to finding a solution, and I think that momentum has taken a temporary pause, but it will continue," he said.

Exports of shrimp,  apparel, jewellery may dip 50-70%: GTRI

The imposition of a 50% US tariff on Indian goods will impact exports of nine product categories, including shrimp, organic chemicals, apparel, and jewellery by 50-70%, think tank GTRI said on Thursday. GTRI, in its analysis, has categorised India's export segments in three categories- very high impact sectors (exports may be down by 50-70%), high-impact sectors (exports may be down by 30-50%), and low or no impact areas.

50% US tariff on apparel exports could be death knell for small cos: AEPC

Seeking immediate fiscal support of the government,  AEPC on Thursday said the doubling of tariffs to 50% by the Trump administration on Indian goods will sound the death knell for micro and medium enterprises, particularly those heavily dependent on the American market.

Apparel Export Promotion Council (AEPC) Chairman Sudhir Sekhri said the announcement is a huge setback to the labour-intensive export industry. "There is no way the industry can absorb this. I am sure the government also realises that this unreasonable increase in tariff will sound the death knell for the micro and medium apparel industry, especially those who majorly sell to the US market, unless the government steps in with direct fiscal support to the industry," he said.