India unlikely to retaliate against Trump’s 26% tariff on imports : Govt official
NEW DELHI : India is unlikely to retaliate against US President Donald Trump‘s recent announcement of 26 per cent tariff on its imports, news agency Reuters reported citing a government official.
Citing ongoing talks for a deal between India and the US, the official mentioned that the Centre has looked into a clause of Trump’s tariff order that offers a possible respite to trading partners who “take significant steps to remedy non-reciprocal trade arrangements”.
Another government official told the news agency that India sees an advantage in being one of the first nations to have started talks with Washington over a trade deal and is better placed that China, Vietnam, and Indonesia.
In a bid to resolve the standoff on tariffs, India and the US agreed in February to secure an early trade deal by autumn of this year.
Meanwhile, Trump showed no indication of reversing his tariff plans, stressing, “What’s going to happen to the markets, I can’t tell you. But, our country is much stronger.” His firm stance comes amidst a turbulent market environment, with no deal in sight with China until the trade deficit issue is resolved.
Unless we solve that problem, I’m not going to make a deal,” Trump stated.
With the imposition of an additional 34% reciprocal tariff on China, which responded in kind, the White House justified the tariffs as a measure to combat illicit fentanyl exports from China. Trump likened the administration’s approach to taking necessary ‘medicine’ for economic issues, despite the market turmoil.
Trump attributed the current economic challenges to poor trade deals by his predecessor, Joe Biden, claiming, “We have been treated so badly by other countries because we had stupid leadership that allowed this to happen.”
These comments come in the wake of a sharp decline in US markets, marked by a $6.6 trillion loss. S&P 500 E-minis was down 4%, Dow E-minis down by 3.8%, and Nasdaq 100 E-minis falling 4.6% as markets opened on Sunday.
The Dow Jones Industrial Average fell by 2,231 points, marking a 5.5% decline, while the Nasdaq composite saw a 5.8% drop, sinking over 20% below its December record. Amidst this, Trump remains resolute on his tariff strategy.
Asian markets are also expected to react negatively, as the risk of a US recession looms larger with potential rate cuts anticipated by May. Engagements with European and Asian leaders have been noted, with Trump mentioning that “they were dying to make a deal.”