Prepare to bargain

India must create strategy to deal with US tariffs

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While on the campaign trail last year, American President Donald Trump had declared "tariff" was "his favourite word". Since taking office in January, he has moved swiftly on all aspects of his agenda – and so it should come as no surprise that it has been announced that, from the end of this week, the United States will impose tariffs of 25 per cent on goods imported from its neighbouring nations of Canada and Mexico, as well as 10 per cent on those from China.

At the time of going to the press, Mr Trump was holding negotiations with the Canadian and Mexican administrations. He has also promised that tariffs on the European Union would shortly follow. What may appear surprising initially is that these tariffs are harsher on friends and allies than on Mr Trump's bugbear of China. He had promised tariffs of up to 60 per cent on Chinese goods during the campaign, so 10 per cent is far less impactful.