New Delhi — In response to mounting concerns over the U.S. government’s tariff hikes under former President Donald Trump’s administration, a senior Indian official has stated that India is actively reviewing its trade policy and may explore reciprocal measures if deemed necessary. This is the first official indication that India could consider a calibrated response to the U.S.'s protectionist stance.
The Trump administration had imposed additional tariffs on a range of Indian goods, citing imbalanced trade practices. These moves have impacted sectors like textiles, pharmaceuticals, and engineering products, raising alarm among Indian exporters and trade analysts.
Breaking the government’s silence, the senior official stated, “India believes in fair trade. While we remain committed to strengthening Indo-U.S. relations, retaliatory action remains a policy option to safeguard our economic interests.”
The official clarified that any counter-measures will be carefully assessed and implemented in line with WTO guidelines, aiming to avoid escalation while sending a clear message. Discussions within the commerce ministry and with industry stakeholders are already underway to evaluate the impact of the tariffs and formulate a balanced response.
India and the U.S. have historically enjoyed robust trade relations, but recent developments have tested this partnership. The U.S. had previously withdrawn India’s Generalized System of Preferences (GSP) benefits, affecting tariff-free access for several Indian products.
Experts suggest that India may consider imposing tariffs on select American imports, including agricultural products and medical devices. However, the official emphasized that New Delhi prefers dialogue over dispute.
“There is space for negotiation, and we are hopeful that the next rounds of trade discussions will bring clarity,” the official added.
Meanwhile, Indian industry bodies have urged the government to act decisively to protect domestic interests and maintain competitiveness in global markets.
As global trade realignments continue, India's response to the U.S. tariffs will likely set the tone for its broader trade strategy in the coming months.
