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Dealing with a maverick
Financial Express Delhi
|February 04, 2025
As Trump is bent on a tariff war, India's strategy must include a mix of striking back & coalition building
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After imposing blanket tariffs on Canada, Mexico, and China, US President Donald Trump has turned the heat on the European Union (EU). Trump's statement that he will "absolutely" impose tariffs on the 27-country customs-and-monetary bloc elicited a quick response, with Brussels vowing to strike back firmly if targeted. Canada and Mexico, the top two trading partners of the US, too had signaled retaliation, while China has so far maintained an eloquent silence. Trump has by now made it clear that the executive order called "America First Trade Policy" that his administration issued immediately after assuming office is indeed meant to be followed through in letter and spirit. Having either acted upon or pledged to move against the US's top four trade partners already, he is very likely to move further. India has a consistent trade surplus with the US, which Trump abhors, and in his eye, the country is a "tariff abuser" and "currency manipulator". What needs to be watched now is whether his imminent action against New Delhi on the trade front will be restricted to spec
This story is from the February 04, 2025 edition of Financial Express Delhi.
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