India's Ministry of External Affairs said the government is not reviewing existing agreements following a new 10% tariff on Indian imports [1].
The development tests the economic resilience of the bilateral relationship as both nations attempt to balance trade deficits through diplomatic negotiations.
Washington announced the 10% tariff on Saturday, July 25, 2026 [1]. The move is part of a broader set of U.S. trade measures intended to address trade imbalances between the two countries [1]. While some reports suggested a higher tariff rate, the Ministry of External Affairs said disinformation was being spread regarding India's response to the measures [2].
Officials from the Ministry of External Affairs said that trade talks with the U.S. are currently underway [2]. The ministry said that India will keep engaging with the U.S. government to conclude a bilateral trade agreement [1]. This commitment to dialogue suggests that New Delhi prefers a negotiated settlement over retaliatory trade barriers, a strategy aimed at maintaining strategic stability.
Despite the introduction of the duties, the ministry said the government was not reconsidering its current pacts with the U.S. [2]. The ongoing discussions are expected to focus on market access, and the reduction of trade barriers to mitigate the impact of the new tariffs [1].
“India's Ministry of External Affairs said the government is not reviewing existing agreements”
The decision by India to maintain trade talks despite the 10% tariff indicates a preference for diplomatic resolution over a trade war. By publicly denying a review of existing pacts, New Delhi is signaling stability to investors and the U.S. government, attempting to leverage ongoing negotiations to potentially reverse or offset the new tariffs through a comprehensive bilateral agreement.
