India Seeks US Trade Talks, Signaling No Retaliatory Tariffs
India’s government indicated it won’t take retaliatory action against the US for imposing reciprocal tariffs, focusing its efforts instead on negotiating a bilateral trade deal with the Trump administration to bring down duties.
New Delhi is seeking dialog and not confrontation with the US, an Indian government official told reporters in a background briefing on Saturday, asking not to be identified in line with official rules.
India has first-mover advantage over its rivals in the region since the government has already started talks on a trade deal with the Trump administration, the official said.
Prime Minister Narendra Modi met US President Donald Trump in Washington in February, where the two leaders agreed to boost trade and negotiate a bilateral agreement by the fall of this year.
Despite those talks, and a series of concessions already made by Modi’s government to reduce trade barriers, Trump last week announced a 26% tariff on US imports from India, among the highest rates for a major economy.
India’s restraint from immediate retaliation contrasts with its neighbor China, which on Friday announced it would impose a 34% retaliatory tariff on all goods imported from the US. In Southeast Asia, countries like Vietnam and Cambodia are also seeking to accommodate Trump rather than retaliate.
New Delhi plans to work toward a balanced and equitable trade agreement with the US, the Indian official told reporters Saturday. All options are up for negotiation, and both goods and services will be discussed, the official said. The government is also in touch with exporters to assess the likely impact of the tariffs and the support it can offer businesses, the person said.
Bloomberg News previously reported that officials in New Delhi are considering further reductions on import duties on US goods. India’s Ministry of Commerce and Industry said last week it remains in touch with the Trump administration and expects to continue trade talks with officials there in the coming days.
The NSE Nifty 50 Index fared better than most Asian peers last week as the impact of the levies was deemed milder than that for other economies.
