India weighs plan as tariff war flares

India is working on an action plan to steer clear of a potential trade war with the US, two people aware of the matter said, with the government looking to prepare a list of goods that might face tariff action.

- Dhirendra Kumar

The development comes in the backdrop of a trade war erupting between the US and Mexico, Canada and China, with tariffs and retaliatory tariffs exchanged blow for blow.

On Saturday, US president Donald Trump imposed 25% tariff on imports from Mexico and Canada (energy products from Canada would attract 10% tariff), and 10% tariff on imports from China.

Mexico and Canada swiftly counter-imposed an identical 25% tariff on imports from the US the same day.

The Indian government is expected to unveil a fullfledged response plan in the coming months depending on the decisions of the US government, the two persons cited above said on condition of anonymity.