During Prime Minister Narendra Modi’s visit to the US in February, both countries committed to finalising an early trade agreement by the autumn of this year in an effort to resolve tariff-related issuesread moreIndia has no plans to retaliate against the United States over President Donald Trump’s 26% retaliatory tariffs, according to a government official, citing ongoing trade negotiations between the two nations.The official noted that the Indian government had identified a provision within Trump’s tariff order that may offer relief to trading partners who “take significant steps to remedy non-reciprocal trade arrangements”. This clause suggests that countries working to correct imbalanced trade deals could either be exempt from, or granted reprieve from, the new tariffs.AdvertisementAnother official, speaking on condition of anonymity, said New Delhi believes it is in a stronger position than other Asian countries impacted by the heightened US tariffs—such as China, Vietnam, and Indonesia. This is because India was among the first to initiate trade discussions with Washington, a move the government views as strategically advantageous.More from India
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‘Want god to keep everyone happy’: Anant Ambani completes 170-km padayatra from Jamnagar To Dwarkadhish TempleDuring Prime Minister Narendra Modi’s visit to the US in February, both countries committed to finalising an early trade agreement by the autumn of this year in an effort to resolve tariff-related issues.India has joined Taiwan and Indonesia in refraining from imposing retaliatory tariffs on the United States. Meanwhile, other nations, including the European Commission, are reportedly preparing countermeasures against US goods, in response to China’s retaliatory actions.The global trade war has rattled financial markets, with stock prices falling sharply in several countries, including the US.A Reuters report from last month suggested that India is open to reducing $23 billion worth of tariffs on American goods entering the country.To address US concerns and foster goodwill, the Modi administration has already undertaken several measures—these include reducing import duties on high-end motorcycles and American bourbon, and removing the digital services tax that previously affected major US technology firms.However, economists warn that Trump’s tariffs could reduce India’s GDP growth by an estimated 20 to 40 basis points in the current fiscal year and severely impact India’s diamond industry, which exports over one-third of its output to the United States, putting thousands of jobs at risk.AdvertisementEnd of Article
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India not yet planning retaliatory levies over Trump’s reciprocal tariffs: Reports
