Opportunity in crisis

Trump's tariff shocker should prompt India to push ahead on big-ticket reforms

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Here is a massive churn underway in the global economic environment as the rules-based trading order is being upended by the US President Donald Trump's tariff disruption. Coercive diplomacy is in play against all countries, including India, which has just been slapped with additional duties of 25%—besides the 25% on India's goods to the US—for importing Russian oil as sanctions on Moscow are imminent for its continued war with Ukraine.

The big question is whether India should yield to Trump's bullying or face the consequences being tariffed at 50%. India has rightly responded that the additional levy of 25% is "unfair, unjustified, and unreasonable" and that it would take all actions necessary to protect its national interests. There is no doubt that 50% tariffs would adversely impact more than half of India's exports to the US.