India Plans Countermeasures After Trump's 25% Tariff Shock

New Delhi is evaluating measures to address Washington's concerns, including increasing imports of American goods, while opting against immediate counter-tariffs in response to President Donald Trump's unexpected 25% duty hike, according to sources familiar with the discussions.

Indian officials were reportedly caught off guard by Wednesday's announcement, viewing the move as disruptive to ongoing trade negotiations, said the sources, who requested anonymity due to the sensitive nature of the talks. Rather than escalating tensions, the government is prioritizing diplomatic engagement and exploring options to expand purchases from the US—its top trading partner—in an effort to maintain stable economic relations.

The calibrated approach reflects India's desire to avoid a full-blown trade dispute while safeguarding its export interests. Policy makers are assessing potential concessions that could ease bilateral friction without compromising key domestic industries. The development underscores the delicate balancing act facing New Delhi as it navigates an increasingly protectionist global trade environment.