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On Trump's tariffs, India must take the long view, play a strategic game

They present near-term growth challenges, but India needs to play the long game

India US trade relations, US tariffs on Indian imports
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India US trade relations, US tariffs on Indian imports. (Illustration: Binay Sinha)

Sonal Varma

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The announcement of 25 per cent tariffs by the United States on imports from India, coupled with an unspecified penalty for Russian energy and defence purchases, marks a disappointing turn in India-US trade relations and appears particularly harsh, given that India was among the first to engage the US in negotiations. India faces higher tariffs than Vietnam (20 per cent), Indonesia (19 per cent) and other Asian competitors, despite being at a more advanced stage of negotiations. This disparity raises questions over both the negotiation strategy and the broader geopolitical dynamics at play.
 
However, viewing this setback through a broader
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