Centre's Advisers Recommend Tit-for-Tat Tariffs in Some Areas

The group has cautioned that the final-goods sector could become the most vulnerable target for trade scrutiny

- Puja Mehra

A group of trade experts advising the government on its trade negotiations with the Donald Trump administration has recommended that India prepare to levy tit-for-tat tariffs on American goods that enjoy significant market access in India and that contribute to a sizeable US trade surplus in these product categories.

The strategy is expected to give India negotiating leverage in the ongoing trade talks, at a time the US President has doubled down on imposing retaliatory tariffs from 2 April, which casts a shadow of uncertainty over India's access to the US market. India should consider such strategic retaliatory tariffs on goods from the US, if the trade tensions were to escalate once again, the group has said.