On April 2, 2025, U.S. President Donald Trump launched a bold tariff offensive, proclaiming it “Liberation Day” for American industries. The measures included a 26% “reciprocal” tariff on Indian imports—half the 52% Trump accused India of levying on U.S. goods—alongside a 10% baseline tariff on all nations, with steeper rates like 34% on China and 46% on Vietnam. This aggressive policy, rooted in Trump’s “America First” agenda, has ignited a fierce global backlash, with major powers like China, Canada, Mexico, and the European Union swiftly retaliating. Yet, India, a rising economic force and strategic U.S. ally, has adopted a strikingly subdued posture, choosing silence over the counteroffensives mounted by its peers.
BREAKING: India backs down from retaliatory tariffs on US goods, conceding to Trump. Officials now push for direct talks with the President for a new trade deal. pic.twitter.com/DJy1mSYIsz
— Election Wizard (@ElectionWiz) April 6, 2025
The Global Retaliation: A Swift and Unified Front
The response from other powerful nations has been rapid and resolute. China, facing a cumulative 54% tariff (building on existing duties), countered on April 4, 2025, with a 34% tariff on $60 billion of U.S. goods, targeting soybeans, pork, and semiconductors, while tightening export controls on rare earth minerals vital to tech supply chains. Canada, hit with a 25% tariff linked to fentanyl trafficking claims, announced retaliatory duties on April 6, 2025, covering $20.5 billion in U.S. imports like energy products and steel, with Prime Minister Justin Trudeau warning of further escalation. Mexico, also facing a 25% tariff, unveiled plans on April 5, 2025, for tariffs on U.S. agricultural exports like corn and beef, with President Claudia Sheinbaum dismissing Trump’s drug-related rationale as “baseless.” The European Union, slapped with a 20% tariff, finalized retaliatory duties on April 7, 2025, targeting $28 billion in U.S. goods, including Harley-Davidson motorcycles and Kentucky bourbon, with implementation set for mid-April.
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These nations have paired their economic reprisals with diplomatic salvos, filing WTO complaints and framing Trump’s tariffs as a violation of international trade norms. Their actions signal a readiness to protect national interests, even at the risk of a prolonged trade war.
India’s Quiet Approach: Caution Over Confrontation
In sharp contrast, India has refrained from retaliation or even strong public criticism as of April 7, 2025. The Ministry of Commerce and Industry has limited its response to a brief statement on April 4, 2025, noting it is “evaluating the implications” of the U.S. tariffs and will act “in India’s best interests.” Finance Minister Nirmala Sitharaman echoed this restraint in a press briefing on April 6, 2025, saying, “We are not in the business of hasty reactions; our focus is on dialogue and long-term stability.” This measured tone stands out against the backdrop of aggressive countermeasures elsewhere.
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India’s exports to the U.S., totaling $77.5 billion in FY 2024, face significant exposure. Key sectors like textiles ($9 billion), pharmaceuticals ($7 billion), and polished diamonds ($8.58 billion) could lose market share to competitors like Vietnam, which, despite its own 46% tariff, benefits from lower baseline costs. The Gem and Jewellery Export Promotion Council warned on April 5, 2025, that the 26% tariff could cost India $2 billion annually in diamond exports alone, threatening over 100,000 jobs in Surat. Economists estimate a 0.2-0.4% drag on India’s GDP growth if the tariffs persist, per a Bloomberg analysis on April 3, 2025. Yet, New Delhi has not signaled any immediate counter-tariffs or WTO action.
INDIA 🇮🇳 TO FOCUS ON TRADE DEAL, AVOIDS RETALIATION ON 🇺🇸 TARIFFS
India is unlikely to retaliate against President Donald Trump’s tariffs right away, and is focusing efforts on negotiating a bilateral trade deal with the US to bring down tariffs – Bloomberg pic.twitter.com/e8lotEOavp
— Evan (@StockMKTNewz) April 6, 2025
Why India Stays Silent
India’s restraint stems from a mix of economic pragmatism and geopolitical strategy. Unlike China, with its $300 billion trade surplus with the U.S., India’s $45.7 billion surplus is smaller, reducing the perceived urgency for retaliation. Moreover, India’s own high tariffs—averaging 18% on imports, with peaks like 52% on Harley-Davidson motorcycles—lend credence to Trump’s “reciprocity” argument, potentially weakening India’s case in a tit-for-tat escalation. Retaliating could also invite further U.S. scrutiny, given India’s reliance on American markets for 17% of its total exports.
Strategically, India appears to be leveraging its deepening ties with the U.S. through the Quad (with Japan and Australia) and shared concerns over China’s rise. Past concessions, like tariff cuts on U.S. almonds and motorcycles in 2023, reflect Modi’s willingness to placate Trump. Ongoing trade talks, aiming for a limited U.S.-India deal by late 2025, further suggest a preference for negotiation over confrontation. An Indian official, speaking anonymously to The Economic Times on April 6, 2025, hinted at this calculus: “We see more value in strengthening our partnership than locking horns over tariffs.”
Opposition leaders and social media influencers have pointed to the pending prosecution of an Indian corporation for fraud in the U.S. as a key reason for India’s cautious stance, given the significant political influence of the tycoon.
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A Missed Opportunity or a Long Game?
Critics argue India’s passivity risks projecting weakness. Former Commerce Secretary Anup Wadhawan remarked on April 5, 2025, that “silence could embolden the U.S. to push harder, especially if India doesn’t signal resolve.” Others point to Canada and Mexico, which, despite their own U.S. dependencies, have stood firm. Yet, India’s history of avoiding trade wars—evident in its muted response to U.S. steel tariffs in 2018—suggests a deliberate strategy of de-escalation, betting that Trump’s bombast will soften under diplomatic pressure or economic realities.
As the world braces for the fallout of Trump’s tariff gambit, India’s role as a mute spectator stands in stark relief to the retaliatory roar of other powers. Whether this restraint preserves its leverage or cedes ground to more assertive rivals remains to be seen. For now, New Delhi watches while others fight, hoping its quiet diplomacy pays off in a louder, tariff-laden world.
