India is unlikely to immediately retaliate against President Donald Trump’s tariff levies, focusing on negotiating a bilateral trade contract with the United States, according to officials from the Indian government.
South Asian countries are seeking dialogue, not conflict, he added that India has the advantage of the first mover compared to rivals in the region. India is planning to work towards a balanced and fair trade agreement with the US, officials said.
According to the formula, all options are negotiable and both the goods and services are discussed. The government is also in touch with exporters about the expected impact, which can be useful if they reach out.
Last week, Trump announced a 26% tariff on US imports from India, causing a blow to exporters and risking aggravating the slowdown in an economy that is already struggling with intentional consumer trust. While negotiated rate drops could result in some easing, increasing global trade tensions remains a threat.
When Trump visited Washington after returning to his oval office, Prime Minister Narendra Modi and the US President agreed to negotiate a bilateral trade agreement by this fall.
The new tariffs are a Modi government set-off, making several concessions to Trump on his trade and immigration agenda, and showing his willingness to cut further obligations on imports from the US last month when he visited US trade officials.
India’s detention from immediate retaliation is in contrast to neighboring China, and decided to impose a 34% retaliation tariff on all goods imported from the US.
The NSE Nifty 50 index was superior to most Asian peers last week, as the tax impact was seen as milder than other economies.
