Coercive bilateralism: New world order defined by how trade deals are made

For India, the challenge is to strike a balance between tactical necessity and economic priorities

By Pravin Krishna and Monil Sharma

  On April 2, United States President Donald Trump announced a broad set of bilateral tariffs that stunned the world. The tariffs were high and uneven: India faced a 26 per cent tariff; China, 34 per cent; and the European Union, 20 per cent. Soon after, they were suspended for 90 days, with a blunt message: Unless the US’ trading partners agreed to “fair and reciprocal” trade deals during the pause until July 9 (now extended to August 1), the punitive tariffs would take effect. The announcement marked a hard pivot away from the rules-based