Power politics, trade and tariffs

We should undertake second-generation reforms, including significant reduction in import duties. Else, we support Trump's claim of India being the tariff king

- ASHOK GULATI

PRESIDENT DONALD TRUMP's frequent utterances that he is the one who stopped the war between India and Pakistan, which could have gone nuclear, shows that he is bent upon claiming the Nobel Peace Prize. He has said that he would like to go down in history as a peacemaker. Interestingly, Pakistan has nominated him, and is getting favored treatment. But India denied Trump had any role in stopping the four-day conflict, and this seems to have irked him.

Now, Peter Navarro, his trade advisor, says outlandishly that Russia-Ukraine is "Modi's war", as India is funding it through Russian oil purchases. Trump's 25% punitive tariff for buying Russian oil on top of 25% reciprocal tariffs could only be a beginning of the punishment. The White House is already talking about cutting down H1-B visas, and some senators even called it a "scam". India is the biggest beneficiary of the programme, claiming almost 70% share. With 50% tariffs, India's US exports are going to suffer a massive loss, maybe $40-50 billion. And if Trump doubles down on H1-B visas, the losses could be much higher. So, India has a big stake with too many of its eggs in the US's basket.