What is India doing about Donald Trump’s tariff blow? Report reveals govt strategy as markets reel

The official highlighted that New Delhi is looking into a clause in Trump’s tariff policy that could exempt nations who "take significant steps to remedy non-reciprocal trade arrangements."

The US tariff hike, part of Trump’s trade offensive, has rattled global markets, with India’s Sensex plunging 3,939.68 points to 71,425.01 and the Nifty sliding 1,160.8 points to 21,743.65 in early trade on Monday.

Hong Kong’s Hang Seng plunged nearly 11%, Japan’s Nikkei 225 was down almost 7%, Shanghai Composite fell over 6%, and South Korea’s Kospi tumbled 5%.

According to the report, India sees an advantage in being among the first nations to initiate trade talks with the US, positioning itself more favourably than regional peers like China, Vietnam and Indonesia, who have faced similar tariff actions.

Following trade discussions between Indian and US officials in New Delhi late last month, both sides agreed to pursue a Bilateral Trade Agreement (BTA) targeting $500 billion in trade by 2030, a goal set during Prime Minister Narendra Modi’s February visit to Washington.

The talks, which followed Union Commerce Minister Piyush Goyal’s earlier trip to the US, aim to finalise an initial tranche by fall 2025.

As part of efforts to build goodwill with the Trump administration, the Modi government has already taken steps such as cutting import duties on high-end motorcycles and bourbon, and removing a controversial digital services tax that impacted American technology firms.

The Commerce Ministry, in a statement issued last week, said the government was “carefully examining” the impact of the US tariff measures and is in active consultation with domestic stakeholders.

“Keeping in view the vision of 'Viksit Bharat,' the Department is actively consulting stakeholders, including Indian industry and exporters, to understand their assessment of the tariffs and evaluate the situation,” the ministry said.

Both countries are currently negotiating a wide-ranging Bilateral Trade Agreement under the ‘Mission 500’ framework, which aims to double two-way trade to USD 500 billion by 2030. Talks are focused on deepening supply chain integration, boosting investments, and promoting technology transfer.

“Discussions are ongoing between Indian and US trade teams for the expeditious conclusion of a mutually beneficial, multi-sectoral Bilateral Trade Agreement,” the ministry added.