{"id":16120,"date":"2025-04-13T09:18:11","date_gmt":"2025-04-13T09:18:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/16120\/"},"modified":"2025-04-13T09:18:11","modified_gmt":"2025-04-13T09:18:11","slug":"india-is-not-fighting-back-on-tariffs-because-it-doesnt-have-to-explained","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/16120\/","title":{"rendered":"India Is Not Fighting Back On Tariffs, Because It Doesn\u2019t Have To – EXPLAINED"},"content":{"rendered":"

\"Tariff<\/p>\n

As the US and China engage in a trade war, a deep dive into India\u2019s strategy for tackling the tariff issue.<\/p>\n

New Delhi:<\/strong> Tariff hike, global market meltdown, and trade war were some of the buzzwords that dominated the headlines this week. April 7 brought several key global indices to their knees as Wall Street registered a 52-week low at the start of trade on Monday. The fallout was the outcome of a reciprocal tariff announcement by US President Donald Trump<\/a> on April 2. Asian markets were also hit hard; however, compared to other major economies, India did not feel the impact as much, at least for now. The Bombay Stock Exchange (BSE), which plunged over 3,000 points during early trade on Monday, showed some recovery to close the day down by just over 2,000 points.<\/p>\n

The days that followed saw extreme global reactions, not-so-in-favour of Mr Trump, who insisted that his tariff move was doing “really well” for the US and his administration amid the fear of recession.<\/p>\n

\"Trump39sTrump’s tariff chart on ‘Liberation Day’.<\/p>\n

But with China, things got a bit too far. The tariff war that began in February gradually took the shape of a trade war between these two countries as they kept increasing tariffs in a tit-for-tat move. From 10% in February, the Trump administration kept on increasing the tariffs as currently it stands at a whopping 145%. China, too, has retaliated with a counter-tariff of 125% on US goods. Not only this, the US, in a bid to tame the dragon, announced a pause on tariffs for 90 days, except for China.<\/p>\n

\"TheThe US and China are locked in a bitter trade war with both Trump and Xi refusing to back down.<\/p>\n

India, in the meantime, did not take China’s route of retaliation and chose a path of dialogue and trade talks. Firstly, the tariffs on New Delhi were comparatively lower than a few major economies, and secondly, Trump has been, so far, favourable to India’s approach to tariff hikes. India was slapped with a 26% reciprocal tariff; however, after the announcement of a pause for 90 days, the country only needs to pay a 10% baseline tariff for now. <\/p>\n

\"IndianIndian Market Shows Resilience Amid Tariff Threat.<\/p>\n

Trump’s Tariffs Rattle World Markets \u2014 India Falls Least <\/p>\n

The Indian market has shown resilience at a time when global indices are finding it tough to negotiate with Trump’s tariff shock. On April 7, the BSE Sensex plunged by 2,226.79 points or 2.95% to close at 73,137.90 and the Nifty 50 declined by 742.85 points or 3.24% to end at 22,161.60.<\/p>\n

Compared to India, the Shanghai Composite tumbled over 8% intraday before closing 7.3% lower. Hong Kong\u2019s Hang Seng Index posted a historic 13.2% crash \u2014 its steepest fall since the 2008 global financial crisis. Japan\u2019s Nikkei 225 closed 7.8% lower, while Taiwan’s benchmark index recorded a staggering 9.7% decline, the worst in its history. Australia\u2019s ASX 200 and South Korea\u2019s Kospi were also hit hard, losing 4.2% and 5.6%, respectively.<\/p>\n

Sensex looks set on its way to recovery as the Indian equity markets bounced back with strong momentum on April 9, adding Rs 7.32 lakh crore to investor wealth. The benchmark BSE Sensex surged 1,089.18 points or 1.49% to close at 74,227.08. On April 11, Indian equity markets surged as the Nifty 50 and BSE Sensex logged gains of over 1,100 points and 385 points, respectively in early trade.<\/p>\n

\"HowHow Indian Market Reacted After Trump’s Tariff Announcement<\/p>\n

India’s Way of Handling Tariff ShockSo far, India has taken a cautious approach as the focus seems to be on negotiations and bilateral trade talks to navigate the current tariff storm. As nations rush to adjust to the shifting tides of US trade policy \u2014 especially after Donald Trump’s sudden 90-day tariff pause following weeks of tough talk \u2014 India\u2019s more insulated approach appears to have cushioned it from the shocks that have rattled more trade-reliant economies.<\/p>\n

If Trump’s trade representative is to be believed, India is among a group of countries now planning to lower tariffs. Speaking to the Senate Finance Committee, Trump\u2019s Trade Representative Jameson Greer said India is among several nations \u2014 including Argentina, Vietnam and Israel \u2014 that have expressed willingness to cut both tariff and non-tariff barriers under Trump\u2019s push for \u201creciprocity\u201d in trade. (quote source)<\/p>\n

“Nearly 50 countries have approached me personally to discuss the President’s new policy and explore how to achieve reciprocity. And they’ve spoken with many members of the administration. Several of these, such as Argentina, Vietnam, India and Israel, have suggested that they will reduce their tariffs and non tariff barriers in line with the President’s policy,” he said.<\/p>\n

Meanwhile, Union Minister for Commerce and Industry Piyush Goyal assured that the government is “keeping India’s interests at the forefront”.<\/p>\n

On Monday, US Secretary of State Marco Rubio and India\u2019s External Affairs Minister S Jaishankar held talks on the tariff issue. According to US State Department spokesperson Tammy Bruce, the discussion focused on moving toward a fair and balanced trade relationship between the two nations.<\/p>\n

Other Measures Taken By India<\/p>\n

The Reserve Bank of India (RBI) on Wednesday announced a rate cut by 25 bps to 6% to push consumption demand. Despite the disruptions triggered by Trump\u2019s tariffs, India is still on track to achieve its projected GDP growth of 6.3% to 6.8% for FY 2025-26, according to an Indian finance ministry official who spoke to CNBC on condition of anonymity. The forecast was outlined in the government\u2019s Economic Survey released in January.<\/p>\n

\"AsAs US and China engage in a fierce trade war, India sees an opportunity.<\/p>\n

US-China Trade War: India Sees An Opportunity <\/p>\n

With the US taking a stand that may lead to its isolation, and China under strain, EU nations are urgently seeking reliable trade partners \u2014 India among the top contenders. According to economists, India must lower tariffs, enhance export competitiveness, and signal openness to global trade to seize this opportunity. <\/p>\n

Sectors like garments, textiles, and toys offer key potential, especially for MSMEs. However, if Trump resumes tariffs after the current pause, India could lose $7.76 billion in US exports, says the Global Trade Research Initiative (GTRI), a Delhi-based think tank.<\/p>\n

Challenges AheadIndia has so far managed to minimise the damage of rising tariffs, but challenges are far from over. Our pharma industry, which exports around $12.2 billion worth of goods to the US, has been exempted so far, but Trump has already hinted that the US may go for increasing duty on these products. <\/p>\n

The automobile industry, which contributes approximately 3 per cent of India\u2019s total exports to the US, is also expected to bear the brunt of the tariffs. Beyond pharmaceuticals and automobiles, India\u2019s broader manufacturing sector is set to struggle under the burden of higher tariffs.<\/p>\n

India\u2019s restrained response to the escalating global tariff war has helped it avoid the worst of the market volatility seen across other major economies. With lower exposure to global supply chains and a focus on negotiations, India has managed to limit the immediate economic fallout. As trade tensions continue to evolve, India\u2019s next steps on tariff reforms and export competitiveness will be closely watched by global markets and policymakers alike.<\/p>\n","protected":false},"excerpt":{"rendered":"As the US and China engage in a trade war, a deep dive into India\u2019s strategy for tackling…\n","protected":false},"author":2,"featured_media":16121,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,10951,32,1700,10956,10952,10949,10954,10953,16,15,10955,10950],"class_list":{"0":"post-16120","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-china-us-trade-war","10":"tag-donald-trump","11":"tag-economy","12":"tag-economy-news-times-now","13":"tag-india-on-trump-tariff","14":"tag-india-on-us-tariff","15":"tag-tariff-news","16":"tag-trump-tariff-latest-news","17":"tag-uk","18":"tag-united-kingdom","19":"tag-us-tariff","20":"tag-us-china-tariff-war"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114329912855178172","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/16120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=16120"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/16120\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/16121"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=16120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=16120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=16120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}