India's Strategic Trade Response: Avoiding U.S. Tariff Retaliation

India's Strategic Trade Response: Avoiding U.S. Tariff Retaliation In a move deviating from global retaliation trends, India has chosen diplomatic talks over imposing counter tariffs against the U.S.'s 26% tariff under President Trump. This strategy is seen as a pragmatic step amidst ongoing negotiations for a trade deal, according to an Indian government official.Prime Minister Narendra Modi's administration is leveraging a clause in Trump's tariff order that allows for negotiations rather than confrontation, providing potential benefits in securing a trade agreement with the U.S. Interestingly, New Delhi sees its initiative to engage in talks with Washington as advantageous compared to countries like China, Vietnam, and Indonesia, which have faced repercussions from higher U.S. tariffs.While European nations plan countermeasures against the U.S. following China's lead, India prioritizes diplomacy, seeking an agreement by autumn 2025 to defuse tariff tensions. The Indian government's efforts include tariff reductions on select U.S. goods and removing taxes affecting American tech companies, as potential U.S. tariffs loom that could significantly impact India's economic stability and threaten its diamond export industry.

In a move deviating from global retaliation trends, India has chosen diplomatic talks over imposing counter tariffs against the U.S.'s 26% tariff under President Trump.

This strategy is seen as a pragmatic step amidst ongoing negotiations for a trade deal, according to an Indian government official. Prime Minister Narendra Modi's administration is leveraging a clause in Trump's tariff order that allows for negotiations rather than confrontation, providing potential benefits in securing a trade agreement with the U.S.

Interestingly, New Delhi sees its initiative to engage in talks with Washington as advantageous compared to countries like China, Vietnam, and Indonesia, which have faced repercussions from higher U.S. tariffs.

While European nations plan countermeasures against the U.S. following China's lead, India prioritizes diplomacy, seeking an agreement by autumn 2025 to defuse tariff tensions.

The Indian government's efforts include tariff reductions on select U.S. goods and removing taxes affecting American tech companies, as potential U.

S. tariffs loom that could significantly impact India's economic stability and threaten its diamond export industry. (With inputs from agencies.

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