New Delhi faces a difficult choice between attempting to ease tariffs through diplomatic channels or imposing counter-tariffs on U.S. goods.

The US has set a 27% tariff on Indian goods starting April 9. Currently, steel, aluminum, and auto parts face a 25% duty. For other goods, a 10% base tariff applies until April 8.

Indian and U.S. officials discussed trade issues including the reduction of tariffs and easing of non-tariff barriers, making progress towards a bilateral trade agreement during several days of talks in New Delhi,