According to Bloomberg, the Indian government has stated that it will not take retaliatory measures against the reciprocal tariffs imposed by the United States. Instead, India plans to focus its efforts on negotiating a bilateral trade agreement with the Trump administration to reduce tariffs.
During a background briefing on April 5, an Indian government official told reporters that India is seeking dialogue rather than confrontation with the U.S., and has already initiated negotiations with the Trump administration on a trade deal. The official noted that India will discuss all options with the U.S., including trade in goods and services, with the aim of reaching a balanced and fair agreement. The Indian government also plans to stay in close contact with exporters to assess the potential impact of Trump's tariffs and to identify ways to support affected businesses.
It was reported that Indian Prime Minister Narendra Modi met with U.S. President Donald Trump in Washington this past February. The two leaders agreed to increase trade engagement and committed to negotiating a bilateral agreement by the fall of this year.
Despite these talks and several concessions made by India to reduce trade barriers, Trump announced a 26% tariff on Indian imports - one of the highest rates imposed on any major economy by the U.S.
So far, India has not taken immediate retaliatory action. In contrast, neighboring China announced that starting April 10, 2025, it will impose an additional 34% tariff on all imports originating from the U.S., in response to the 34% reciprocal tariffs the U.S. placed on Chinese goods. In Southeast Asia, countries like Vietnam and Cambodia are also opting to adapt to Trump's policies rather than retaliate.
Bloomberg previously reported that Indian officials are considering further reductions in import duties on U.S. goods. India's Ministry of Commerce and Industry has indicated that it will remain in contact with the Trump administration and expects to continue trade negotiations with U.S. officials in the coming days.
