India has said it does not plan reciprocal tariffs against the United States.
The Reuters quoted a source to have confirmed that India does not plan to retaliate against Donald Trump’s 26% tariff on its exports to the US.
An Indian government official told Reuters there are ongoing talks for a deal between India and the US.
The government official said that the Narendra Modi-led administration has already looked into a clause of US' new ‘reciprocal' tariff on India that offers a possible reprieve for trading partners who “take significant steps to remedy non-reciprocal trade arrangements”.
India thinks it being one of the first countries to begin talks with America puts the country in an advantageous position for a trade deal with the US.
India feels it is better placed than Asian peers like China, Vietnam and Indonesia, which have been hit by higher US tariffs, a second government official told Reuters, also declining to be named.
China has already imposed 34% retaliatory tariffs on the US.
US could avoid reciprocal tariffs from India, Taiwan and Indonesia but the European Union could have a different plan.
