BS EDIT: Trading with Trump: India’s Strategy Amid Tariff Threats

By Business StandardPublished On Jan 23, 2025

Tariff resurgence

Trump’s return brings new tariff threats: 25 per cent on Canada and Mexico, 10 per cent on China, and potential levies on EU imports

These moves aim to push trading partners toward US-favoured deals

Tariffs’ impact

Higher tariffs could raise consumer prices, fuel inflation, and trigger retaliatory measures. These disruptions risk destabilising global trade and harming all stakeholders

India’s challenges

India faces threats of 100 per cent tariffs on BRICS nations and risks being lumped with China in trade policies. Clear differentiation is crucial to protect its interests

Strategic response

India must focus on reducing duties, increasing imports from the US, and strengthening diplomatic ties to mitigate trade tensions and maintain economic stability

A pragmatic approach

Maintaining open communication with the US and showcasing India’s unique role in global trade are vital steps in navigating Trump’s policies effectively

Conclusion

Trump’s tariff policies demand a strategic and proactive Indian response. Balancing diplomacy and pragmatism will be key to managing future challenges