Navigating Trade Turbulence: India's Strategic Response to US Tariffs

The commerce ministry is preparing strategies to mitigate the effects of impending US reciprocal tariffs, which could impact Indian exports and trade relations. The ministry is exploring different scenarios to support domestic industries amidst uncertainty about the tariffs' specifics. Simultaneously, efforts are underway to resolve US non-tariff barriers.

The commerce ministry is actively devising strategies to tackle the potential repercussions of US-imposed reciprocal tariffs, according to sources close to the matter. These measures are part of a larger plan to sustain India's export competitiveness amid the changing global trade dynamics instigated by President Trump's administration.

With the announcement of 'Liberation Day' slated for April 2, the US President aims to levy tariffs to curb the country's trade deficit and bolster manufacturing. In response, India is intensifying its focus on a bilateral trade agreement to enhance trade and investment relations.

However, the uncertainty surrounding the proposed tariffs has prompted concerns among Indian exporters. As sector-specific impacts remain unpredictable, the commerce ministry is developing a 'beta mode' portal to address non-tariff barriers affecting Indian goods in the US, aiming for a comprehensive launch within two months.

(With inputs from agencies.)