Of that high-stakes trade showdown

An Executive Order signed by US President Donald Trump on Wednesday, imposing an additional 25% tariff on India for importing oil from Russia, has sent the Indian exporters reeling.

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Trump, in his wisdom, thinks that oil imports from Russia, whether direct or through intermediaries, present an 'unusual and extraordinary' threat to the US and therefore justify emergency economic measures. He may have expected India to plead for relief, just like other countries, but Indian Prime Minister Narendra Modi has struck a defiant note, vowing not to compromise India's interests at any cost. He has said India will have to pay a heavy price for it, but it under his leadership is ready for any eventuality. Kudos to him for his bold stand.

However, political pressure is mounting on PM Modi at home to protect the India exporters vis-à-vis prohibitive and disruptive US tariffs. Kerala Finance Minister K. N. Balagopal has reportedly asked the BJP-led Central government how it is planning to sort out the tariff issue. Other states are likely to follow suit, with the Congress, etc., cranking up pressure on Modi to find a solution fast. Maybe Trump is waiting for political pressure to escalate in India and make the Modi government amenable to the US conditions for a tariff reduction. It is now a game of chicken between Trump and Modi.