India is expected to engage in more Section 4C negotiations with the US and refrain from retaliation.

As part of the reciprocal tariff plan announced on April 2 by US President Donald Trump, India has been hit with 27% tariffs. He declared April 2 to be "Liberation Day" and assured that his tariff policies will boost the economy.

Remarkably, among its Asian counterparts, India has the lowest tariffs. Thailand has been subject to 36% tariffs, Indonesia to 32%, Vietnam to 46%, and China to 34%. These tariffs are on top of the 20% charges that were imposed on China just days after Trump assumed office. According to a person with knowledge of the negotiations, India is in a comparatively better position than its Asian counterparts; "we are right in the middle, it shows that we have been negotiating right."

India will have to negotiate its way out and refrain from retaliation, according to the Commerce Ministry, which has been in a crisis since the early hours of the morning, immediately following Trump's announcement of his retaliatory tariffs. However, policymakers are also aware that things cannot continue as usual in regards to tariffs. Another source stated that "India will cut tariffs across and the quantum of the cut will be significant." Cuts to duties on berries, almonds, and other products are in the anvil.

Section 4 C of the executive order is probably where India will bargain. Section 4C allows tariff reductions for economic and national security issues, but Section 4B imposes penalties for retaliation.

According to Section 4C of Trump's executive order, "I may further modify the HTSUS to decrease or limit in scope the duties imposed under this order if any trading partner takes significant steps to remedy non-reciprocal trade arrangements and align sufficiently with the United States on economic and national security matters." By resolving the issues brought up by the US, this article allows nations to negotiate tariff reductions or exclusions.

Sources claim that Vietnam and other nations may follow suit, therefore India will need to move quickly. Trump acknowledged Vietnam as a "transit economy," and the country's economy may suffer greatly as a result of the 46% tariffs. India will therefore not be the only nation attempting to negotiate under section 4C. India believes that following Canada's lead and imposing retaliatory tariffs could be more harmful.