Subhechcha Ganguly 
India is banking on early trade negotiations with the United States to gain a strategic edge over regional competitors such as China, Vietnam, and Indonesia, which have been more adversely affected by higher US tariffs, according to a Reuters report citing government sources.
An Indian official, speaking on condition of anonymity due to the sensitivity of the discussions, said New Delhi has no immediate plans to retaliate against former US President Donald Trump’s decision to impose a 26% tariff on imports from India. The official noted that Prime Minister Narendra Modi’s administration has identified a clause in Trump’s tariff order that could exempt trading partners making “significant steps to remedy non-reciprocal trade arrangements.”
India considers itself better positioned than its Asian peers due to its proactive approach in initiating trade talks with Washington. A second government source, also requesting anonymity, emphasized this first-mover advantage, as India works towards a potential trade deal with the US by autumn 2025.
Following Trump’s tariff announcement, which sent shockwaves through global markets, India joined countries like Taiwan and Indonesia in deciding against immediate counter-tariffs. Meanwhile, the European Commission is preparing retaliatory duties on US goods, after China responded with its own measures.
The Prime Minister’s Office did not respond to a request for comment at the time of reporting.
