US Tariff Strike | India Bets On Dialogue, Rules Out Retaliatory Action: Sources
New Delhi would remain in dialogue with Washington, and aim to conclude the bilateral trade agreement by October, the sources said.
India is not mulling over retaliatory action against the United States, official sources said on Wednesday, shortly after US President Donald Trump announced 25% tariff on Indian imports.
New Delhi would remain in dialogue with Washington, and aim to conclude the bilateral trade agreement by October, the persons privy to the development said.
While the road ahead is challenging, the tariffs imposed by the US are likely short-term and under review, they added.
The Indian government will maintain its position, opting for a measured response and choosing dialogue over counter-tariffs, the sources further noted.
India has been involved in the prolonged negotiations with the US over a bilateral trade deal. Since both sides could not finalise an agreement before the Aug. 1 deadline set by Trump, the US President has gone ahead to raise the tariffs against India.
"Remember, while India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country," Trump posted on Truth Social.
Trump said he would also be levying an additional "penalty" on India, as it has been buying Russian military equipment and is also the "largest buyer" of Russian crude oil.
"India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1," he said.
Official sources who spoke to NDTV Profit said there is no immediate disruptions seen to Indian exports, as shipments were fast-tracked for three to four months to offset the impact of potentially higher tariffs.
Also, they pointed out, excessive tariffs risk dampening US demand, making them ineffective.
Notably, India and the US have so far held multiple rounds of negotiations to strike a trade deal. The fifth round of talks concluded in Washington earlier this month, and a team from the US is expected to visit India on August 25 for the next set of negotiations.
