India Prioritizes Trade Talks Over Immediate Response to US Tariffs

India Prioritizes Trade Talks Over Immediate Response to US Tariffs

India is opting not to respond with immediate retaliatory measures following President Donald Trump’s recent tariff hike, instead channeling efforts toward finalizing a bilateral trade agreement with the United States, an Indian government official stated.

Focusing on constructive dialogue rather than confrontation, the official highlighted India’s strategic position in the region and its aim to secure a fair and balanced trade pact. Discussions are expected to cover both goods and services, with all aspects open for negotiation.

Authorities are also engaging with exporters to assess potential impacts and are ready to offer assistance where needed.

Trump’s announcement of a 26% tariff on imports from India last week dealt a blow to Indian exporters and added pressure to an economy already facing sluggish consumer demand. A successful agreement could help ease that burden, though broader global trade uncertainties remain.

Prime Minister Narendra Modi and President Trump, during Modi’s recent visit to Washington, committed to concluding a trade deal by the fall. Despite the setback, India remains committed to negotiations, having previously made concessions in trade and immigration talks.

India’s measured approach contrasts with China’s decision to retaliate with a 34% tariff on US imports.