‘A temporary phase,’ say govt sources after Trump's 50% tariffs kick in: Report

AS the 25 per cent additional US merchandise tariff on republic of india took set up on wed, the Centre affirmed that thither is "no cause for panic", saying that the impact is unlikely to be as severe as feared, news agency PTI reported, citing government sources.Indian exports to the US are now subject to 50 per cent tariffs, a result of American President Donald Trump's move to impose an additional 25 per cent levy as a "penalty" for New Delhi's purchase of Russian oil.There is "no cause for panic, the impact is unlikely to be as severe as feared given the diversified nature of Indian exports", PTI cited government sources as saying."It is a temporary phase in a long-term relationship," they further reportedly added.India believes that the Trump administration's move to double the tariff on Indian goods is "unjustified", HT reported earlier, citing people familiar with the matter. They added that New Delhi has kept the door open for negotiations aimed at a trade deal.The 50 per cent tariff will affect several Indian sectors, from the gems and jewellery industry to the textiles and apparel industry.ALSO READ | Who gets hit, who escapes Trump's 50% tariffs on India: Details on sectors affectedHT's report further mentioned that the people also stated that India's response to Trump's actions has been restrained and responsible.Contacts between the two sides are continuing with the aim of arriving at an understanding on the matter, and ultimately agreeing on a trade deal, one of the people said.Similar to what Prime Minister Narendra Modi affirmed earlier, one of the people familiar with the matter also told HT that New Delhi will not compromise on the interest of the nation's farmers, small producers and micro, small and medium enterprises (MSMEs).“We believe issues will be resolved in negotiations, but there will be no going back on our red lines,” he said.They also said that the penalty for India's Russian oil purchase came as a surprise, as "it was not part of the terms of reference (TOR) agreed on by the two sides in April for the trade negotiations".ALSO READ | ‘Not just Russian oil’: US now blames slow pace of trade deal talks, too, for 50% tariffs on IndiaIt was unusual that Trump chose to penalise India for trading with Russia, when the US President is seeking to improve relations with his Russian counterpart, Vladimir Putin.‘Economy very strong’, says MoSEarlier in the day, Minister of State for External Affairs, Kirti Vardhan Singh, also responded on the doubled US tariffs on India and said, "Our economy is very strong, our industries are very strong, and we will certainly not let our country suffer."He said the government will study what will happen but at the same it is also "taking appropriate steps so that it (tariffs) does not harm our economy".ALSO READ | Indian goods won't face 50% US tariffs if these three conditions are met"Our economy, like I said, is growing, strong, resilient, and we will, of course, match and meet these coming challenges. Our concern is our energy security, and we will continue to purchase energy sources from whichever country benefits us," he told reporters in Delhi.Later, while speaking to news agency ANI, Singh also said that India has "immense potential" in all the sectors.He said whether it is agriculture, mines and minerals, or even critical minerals "from capacity building to healthcare to education, we have immense potential in all African countries and most certainly we're going to carry it forward with even more speed".Kirti Vardhan Singh stated that there is going to be huge and fast growth in India's bilateral trades with all African countries.