India may seek to impose additional duties on American imports in response to US tariff hikes, Financial Express has reported, citing a document prepared by the government of PM Narendra Modi. The potential retaliatory steps would be in line with India’s standard response to such external threats.

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For instance, in 2019, New Delhi had slapped tariffs on apples, almonds and motorcycles from the US after the previous administration of US President Donald Trump imposed tariffs on Indian steel and aluminium. A total of 28 US products were targeted. India might take a similar approach this time around as well.

India also exploring lowering tariffs on US products

Earlier, Bloomberg reported that New Delhi was seeking to lower tariffs on American products. India is willing to narrow the $35.3 billion trade surplus with the US, its largest trading partner. The Bloomberg report said India was looking to boost imports of whiskey, steel and oil.

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For reduction of import duties, India will target products that are politically crucial for Republic Party, the report said, citing officials.

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India’s plan is to get the maximum out of any potential US-China trade war and to avoid confrontation with the Trump administration.

Trump’s tariff threat

On his very first day in office, Donald Trump declared he would impose a 25 per cent tariff on Mexico and Canada by February 1.

On China, the Trump team is taking a cautious approach. Trump has decided against imposing tariffs immediately on the world’s second-largest economy, indicating he is in a negotiating mood. Bloomberg reported that Trump wants to engage with China’s Xi Jinping on trade matters.

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Additionally, the GOP leader has warned BRICS nations also of massive tariff action if they opt for a new currency in order to challenge the supremacy of US dollar.  

(With inputs from agencies)