India believes it is premature to create a contingency plan without clarity on the scope and impact of the US's reciprocal tariffs. ⦁ India and the EU will resume negotiations on their free trade agreement in early September.

India will decide how to respond to the upcoming US tariffs only after fully understanding their impact, a senior government official said on Tuesday.

As a trade storm brews across Asia, India is hoping to duck the full blow of America’s tariff blitz. But behind closed doors, negotiations are walking a tightrope and the stakes are massive.

“If you are buying energy from Russia and not helping Ukraine, your goods will face a 500% tariff coming into the United States,” Senator Graham said in an interview. He described the legislation as a “breakthrough” in exerting global pressure on Moscow and noted that Trump had encouraged lawmakers to move forward with the bill.

India's merchandise trade deficit narrowed in June due to a sharp fall in imports, even as the value of exports slipped to a seven-month low following a drop in global commodity prices, data released on Tuesday showed.

India stands at a critical economic juncture. The combination of sound domestic macroeconomics and rising external frictions presents both a test and an opportunity.

Officials say the possibility of differential tariffs may eventually have differential impact, but insist contingency planning will begin only once the exact tariffs are known.

NITI Aayog's trade report highlights India's strong export potential in key product categories amid global trade dynamics.