NEW DELHI: India does not plan to retaliate against US President Donald Trump’s 26 percent tariff on imports from the Asian nation, an Indian government official said, citing ongoing talks for a deal between the countries. Prime Minister Narendra Modi’s administration has looked into a clause of Trump’s tariff order that offers a possible reprieve for trading partners who “take significant steps to remedy non-reciprocal trade arrangements”, said the official, who declined to be named as the details of the talks are confidential.

New Delhi sees an advantage in being one of the first nations to have started talks over a trade deal with Washington, and is better placed than Asian peers like China, Vietnam, and Indonesia, which have been hit by higher US tariffs, a second government official said, also declining to be named.

In the days after Trump’s tariff announcement that has shaken global markets to their core, India joined nations like Taiwan and Indonesia in ruling out counter tariffs, even as the European Commission prepares to hit US products with extra duties following China’s retaliation.

India and the US agreed in February to clinch an early trade deal by autumn 2025 to resolve their standoff on tariffs. The Indian prime minister’s office did not immediately respond to an e-mailed request for comment. Reuters reported last month that New Delhi is open to cutting tariffs on US imports worth $23 billion.

Modi’s administration has taken a number of steps to win over Trump, including lowering tariffs on high-end bikes and bourbon, and dropping a tax on digital services that affected US tech giants. Trump’s tariffs could slow India’s economic growth by 20-40 basis points in the ongoing financial year and may cripple India’s diamond industry, which ships more than a third of its exports to the US, putting at risk thousands of jobs.

Indonesia will not retaliate against US President Donald Trump’s 32 percent trade tariff on Southeast Asia’s largest economy, its senior economic minister said on Sunday in the government’s first response to the levy. Chief Economic Minister Airlangga Hartarto said in a statement that Indonesia would pursue diplomacy and negotiations to find mutually beneficial solutions after Trump announced sweeping global tariffs on Wednesday.

“The approach was taken by considering the long-term interest of bilateral trade relation, as well as to maintain the investment climate and national economic stability,” Airlangga said, adding that Jakarta will support potentially impacted sectors, such as apparel and footwear industry. Trump’s tariff on Indonesia, one of six hard-hit Southeast Asian countries, is set to take effect on Wednesday. The Indonesian government will gather inputs from businesses on Monday to help formulate strategy to address the US tariff, and will find ways to increase trade with European countries as an alternative to the US and China, Airlangga said.

Jakarta has said it would send a high-level delegation to the US for direct negotiations with the government. Indonesia posted a $16.8 billion trade surplus last year with the US, which was its third-biggest export destination, receiving shipments worth $26.3 billion in 2024, according to Indonesian government data. Indonesia’s main exports to the US include electronics, apparel and clothing, and footwear. — Reuters