India has no intention of retaliating against the 26% tariff imposed by U.S. President Donald Trump on imports from India. An Indian government official stated that discussions for a potential deal between the two countries are underway. The Prime Minister Narendra Modi's government has explored a provision in Trump's tariff order that suggests a possibility of relief for trading partners who make efforts to address non-reciprocal trade agreements. India views an advantage in being among the first countries engaged in trade negotiations with the U.S., positioning itself better than other Asian nations such as China, Vietnam, and Indonesia, which have been impacted by higher U.S. tariffs. Unlike the European Commission, which plans to impose additional duties on U.S. goods in response to China's retaliation, India, along with Taiwan and Indonesia, has ruled out implementing counter tariffs after Trump's tariff move. India and the U.S. have agreed to pursue an early trade agreement by 2025 to resolve tariff disputes. The Indian government's efforts to appease Trump include reducing tariffs on certain imports from the U.S. and eliminating a tax on digital services affecting American tech companies. However, Trump's tariffs could potentially slow down India's economic growth and negatively impact the diamond industry, a significant exporter to the U.S., risking numerous jobs. The Indian prime minister's office did not immediately comment on the issue.
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