Tariff Shocker Can Be India's Chance at Trade Reform

Opportunity in Adversity

- Andy Mukherjee

Donald Trump's "Liberation Day" package of tariffs is being interpreted in India in three different ways.

The immediate reaction is relief mixed with schadenfreude: At 27%, the tax on India is not the slap on the wrist that diplomats in New Delhi would have hoped for, especially after making concessions to Elon Musk's Tesla and Starlink, as well as to Alphabet and Meta Platforms. But it's at least less severe than China's 34% and Vietnam's 46%.

The second view, popular among geopolitical analysts, is that this is nevertheless a betrayal of an important ally: Is it fair to be punished like this for agreeing to be America's bulwark in Asia against China's rising dominance? Has Prime Minister Narendra Modi erred in placing too much trust in his friendship with Trump, and by refusing technology and capital from Beijing?