US President Donald Trump has long sought to reshape trade policy. His latest push for “reciprocal tariffs” threatens to undermine the existing global trade system
Trump proposes tariffs that match those imposed on US goods by other countries
This approach, however, overlooks complex trade factors like value-added taxes and non-tariff barriers
Trump’s plan risks violating the most favoured nation (MFN) principle, a key pillar of the World Trade Organization (WTO) that prevents discrimination between trading partners
If the US abandons MFN, each shipment could face rigid origin rules and higher trade barriers. This would disrupt supply chains and increase costs globally
India has adjusted tariffs for specific imports, but this may not be enough. A stronger strategy is needed to counter the shifting global trade landscape
India and other nations must work together to preserve multilateral trade
Joining blocs like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could be a step forward