Trump's MASALA playbook

Over the past few days, India's government and industry watched anxiously as the July 9 deadline for tariff relief from the United States (US) approached.

- AJAY SRIVASTAVA

Many expected a last-minute India-US trade deal, but none was announced. Instead, Washington extended the reprieve to July 31—buying time but increasing pressure on countries to sign deals on US terms.

What the US is offering are not normal trade deals but MASALA deals—Mutually Agreed Settlements Achieved through Leveraged Arm-twisting. These one-sided agreements offer tariff relief only if countries agree to guaranteed US exports and politically useful wins for President Donald Trump, with little regard for fairness or reciprocity.

Liberation Day tariffs
The story began on April 2, when President Trump stunned the world by announcing new country-specific tariffs on 57 nations—26 per cent on Indian goods, 20 per cent on European Union (EU) exports, and up to 54 per cent on others. The fallout was immediate: China and Japan offloaded a combined $1 trillion in US Treasury bonds, shaking global markets and Wall Street alike. Responding to the blowback, the White House softened its stance on April 9, imposing a 90-day pause and a uniform 10 per cent tariff on most imports, excluding China. This pause was presented as a "window" for countries to negotiate fast-track bilateral deals with the US.