Coercive bilateralism: The world trade order

On April 2, The tariffs were high and uneven: India faced a 26 per cent tariff; China, 34 per cent; and the European Union, 20 per cent.

- Pravin Krishna & Monil Sharma

Soon after, they were suspended for 90 days, with a blunt message: Unless the US' trading partners agreed to "fair and reciprocal" trade deals during the pause until July 9 (now extended to August 1), the punitive tariffs would take effect. The announcement marked a hard pivot away from the rules-based trade architecture of the World Trade Organization (WTO) and its insistence on non-discrimination, placing many economies under pressure. Several countries began negotiating bilateral trade deals with the US — from advanced economies like the United Kingdom (UK) to export-dependent partners like Vietnam. Others, including India, are compelled to do the same, lest they face exclusion from one of the largest consumer markets.