Mon Apr 07 19:31:45 UTC 2025: ## India Takes Unconventional Approach to US Tariffs, Aims for Early Trade Deal

**New Delhi, India** – While other nations retaliated with tit-for-tat tariffs in response to US President Donald Trump’s reciprocal tariffs, India has adopted a unique strategy, opting not to retaliate and instead focusing on minimizing the impact on its exporters. This approach, coupled with ongoing negotiations, aims to secure a mutually beneficial trade agreement with the US by autumn 2025.

External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio recently spoke by phone, reaffirming their commitment to finalizing a bilateral trade agreement swiftly. Both leaders emphasized the benefits such an agreement would bring to both nations. Following the call, Minister Jaishankar highlighted the discussion’s coverage of various geopolitical issues and the shared desire for a speedy conclusion of the trade deal.

India’s strategy hinges on absorbing the impact of the 26% US tariff while simultaneously exploring avenues to mitigate its effects. Government officials have pointed to a clause in Trump’s tariff order that might offer relief to trading partners making significant efforts to address trade imbalances. This proactive approach contrasts sharply with the retaliatory measures adopted by countries like China and Canada. Indian officials believe this positions India more favorably than some Asian counterparts who have faced harsher consequences from the US tariffs.

Despite absorbing the tariffs, India has also taken steps to improve relations with the US. These include tariff reductions on items like high-end motorcycles and bourbon, and the removal of a digital services tax affecting major US tech companies. The Commerce Ministry is actively assessing the immediate impact of the tariffs on Indian exporters, particularly those in sectors like diamonds, and exploring potential opportunities arising from the situation.

The India-US relationship extends beyond trade, encompassing a robust strategic partnership based on shared democratic values and converging strategic interests. Both nations are aiming to significantly increase bilateral trade to $500 billion by 2030 from the current level of over $190 billion, reflecting substantial economic interdependence and investment flows in both directions.

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