India Stays Calm Amid US Tariffs, Focuses on Deal by Autumn
India has decided not to hit back against the recent US decision to impose a 26% tariff on goods from India. Instead, the government plans to focus on continuing trade talks with Washington, hoping to seal a deal by autumn 2025.
According to officials familiar with the matter, Prime Minister Narendra Modi’s government sees this as an opportunity rather than a setback. While countries like China, Vietnam, and Indonesia have been impacted heavily by the US tariffs, India believes it has an advantage by being among the first to enter serious negotiations with the US.
Instead of fighting back like Europe or taking a strong stand like China, India is choosing a calm and thoughtful approach. The government wants to fix trade problems through talks and hopes to reach a fair deal with the US that benefits both sides.
Sources say India might lower taxes on about $23 billion worth of American goods. In recent months, India has already made some friendly moves—like cutting import taxes on luxury bikes and American whiskey, and ending a digital tax that affected big US tech companies.
Experts warn that the US tariffs could slow down India’s economy and hurt businesses like the diamond industry, which depends a lot on American buyers. Still, India is sticking to a peaceful path and believes that talking things out is better than starting a trade fight.
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