BS EDIT: Trump’s trade policies: How India should respond

By Business StandardPublished On Feb 12, 2025

The new global trade reality

• Trump’s tariffs on steel and aluminium signal rising US protectionism

• India must engage strategically to safeguard its trade interests

What is Trump’s trade agenda?

• Goals: Reduce US trade deficit (4.2% of GDP) & raise revenue for tax cuts

• Protectionist policies challenge global trade norms

US perspective on global trade

• US argues global trade rules favour China, citing its $1 trillion surplus

• Calls for a new trade system led by democratic nations

India’s case against trade barriers

• India, like the US, runs a trade deficit, not a surplus

• 75% of US imports to India face tariffs below 5%

India’s strategic leverage

• Key market & talent hub for US tech giants

• Trade ties reflect deeper economic interdependence

Trade, geopolitics & China

• China factor unites US and India’s economic concerns

• Stronger US-India ties serve mutual strategic interests