India is proactively addressing the looming threat of U.S. reciprocal tariffs, which could adversely affect its export sector. Finance Minister Nirmala Sitharaman acknowledged the potential repercussions, stating that Commerce Minister Piyush Goyal is actively engaging with U.S. officials, including the United States Trade Representative (USTR), to mitigate these challenges.

In a recent post-budget interaction in Visakhapatnam, Sitharaman emphasized India's commitment to protecting its trade interests, highlighting that decisions will be made based on the outcomes of these critical negotiations.

The U.S., under President Donald Trump, has announced plans to implement reciprocal tariffs starting April 2, targeting countries with high taxes on American products. This strategy aims to rectify perceived unfair trade practices and encourage foreign nations to reduce tariffs or establish manufacturing operations within the U.S., thereby bolstering its economic growth.

India's approach includes ongoing economic reforms, such as reducing import taxes to maintain investor confidence and competitiveness. These measures are designed to alleviate trade tensions with the U.S. while pursuing a mutually beneficial trade agreement.

Additionally, India has eliminated import duties on specific smartphone components, benefiting manufacturers like Apple and Xiaomi, to support local production and navigate global trade tensions.

As negotiations progress, India remains vigilant in safeguarding its economic interests amid evolving global trade dynamics.