New Delhi: While the US has imposed a 50 per cent tariff on India’s exports citing the latter’s purchase of Russian oil, two Indian MPs have said that they are hopeful that trade talks between India and US will continue despite the tariff hike.

Citing a briefing to a parliamentary panel on foreign affairs, Congress MP Shashi Tharoor, who heads the panel, said on Monday (August 11) that trade talks will continue.

"Our relations with the U.S. are multi-dimensional, and should not be seen only through the prism of trade. As of now, there is no change in the existing plans for the sixth round," said Tharoor, citing the foreign secretary's briefing to the panel, reported Reuters.

Earlier, junior finance minister Pankaj Chaudhary had said other parliamentarians that the new tariff would cover around 55% of India’s exports to America.

Chaudhary had said that is estimate factored in the initial 25% levy and the department of commerce is assessing the situation by engaging with all the stakeholders.

The US government helmed by President Donald Trump recently announced that in addition to the 25% import tariff on Indian goods announced earlier, Indian exporters would also have to pay an additional 25% “penalty” because India continues to trade with Russia and import arms and oil from there.

India’s Ministry of External Affairs has responded by calling this move “extremely unfortunate”, and said the US is acting against India while several other countries are also engaging with Russia in different ways, to protect their own national interest.

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