Unlike China, India will not respond to US President Donald Trump’s tariff from tariff. An official of the Government of India, citing the ongoing talks for an agreement between the US and India, said that India is not planning to retaliate against the 26 percent tariff on import by Trump. This report has been published by Reuters.
Trump has written in his tariff order that relief can be given to those business partners who will take important steps to improve the unbalanced trade deficit and want to capitalize on it PM Modi’s government. According to the report, the officer has told this.
On the condition of anonymity, another government official said that New Delhi sees an advantage in being one of the first countries to start a conversation with Washington. India is in a better position than Asian peers like China, Vietnam and Indonesia, which have been affected by the higher American tariffs.
Trump’s tariff announcement has shook the global markets. But India has refused to put counter tariffs and has taken this stand with countries like Taiwan and Indonesia. On the other hand, like China, European commission is also preparing to impose additional fees on American products in revenge action.
Let us know that India and the US agreed to solve their deadlock on tariffs in February and it is expected that an initial trade agreement will be signed by the end of 2025. According to the report, the Indian Prime Minister’s Office did not immediately respond to the request sent by email for comment.
Reuters reported last month that New Delhi is ready to cut tariffs on US imports of $ 23 billion. PM Modi’s administration has taken several steps recently to reduce Trump in his court and avoid tariffs, including reducing tariffs on high-end bikes and borbons and removing tax on digital services.
According to the report, Trump’s tariffs can slow down India’s economic growth in the current financial year to 20-40 basis points (ie 2-4 percent). It can give a big blow to India’s diamond industry, which sends more than one third of its exports to America, which can threaten thousands of jobs.
(Input-roots)
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