India avoids retaliatory tariffs, seeks deal with US

India is not expected to impose retaliatory tariffs on the US following the Trump administration’s decision to levy a 26% duty on Indian exports. Instead, the government plans to prioritize finalizing a bilateral trade agreement with the US to ease tensions, a government official told Reuters.

New Delhi is hopeful that a clause in the recent executive order signed by President Donald Trump will provide some relief. The clause allows exemptions for countries that take meaningful steps to address what the US considers non-reciprocal trade practices, the official said.

The US tariff announcement has rattled global markets and triggered a downturn in Indian equities. Indian authorities are now focused on diplomatic and policy efforts to resolve the issue through negotiations.