US Tariffs Hit Hard, But India and EU Choose Diplomacy Over Retaliation

India is choosing diplomacy over retaliation after the US imposed a 26% tariff on Indian exports. Instead of hitting back, New Delhi is focusing on finalizing a trade agreement with the U.S., using parts of the executive order that reward countries working to fix unfair trade practices.

The Indian government is currently assessing the impact of the tariffs, especially on key sectors like diamonds, steel, and aluminum. These industries rely heavily on the U.S. market and now face potential job losses.

Also Read: EU, China, and Canada Vow Retaliation Against US Tariffs | Republic World

Support measures, such as interest subsidies and help with market diversification, are being considered. Labor-intensive sectors like textiles, footwear, and agriculture are also under close watch due to their vulnerability.

Meanwhile, EU trade ministers met in Luxembourg and echoed a similar approach. As the U.S. prepares to roll out tariffs—25% on steel, aluminum, and cars, and 20% on other goods—the EU is holding back from immediate retaliation.

Dutch Trade Minister Reinette Klever said the priority is to avoid a trade war and get the U.S. back to the negotiating table. Still, the EU is preparing targeted countermeasures worth $28 billion, though some fear this could trigger even harsher US actions. Internal divisions remain, with countries like France pushing for a tougher stance, while others, including Ireland, urge caution.

German Economy Minister Robert Habeck called for unity, warning that a fragmented response would only weaken the EU’s position.