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India’s early moves to shield from Trump’s global tariffs may pay off

The US may not target India as yet under its global reciprocal tariffs given New Delhi’s moves to slash import duties, analysts say

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US President Donald Trump and Indian Prime Minister Narendra Modi meet in the Oval Office in February. Photo: TNS
India’s pre-emptive moves to shield itself from US President Donald Trump’s decision to impose global retaliatory tariffs by stepping up negotiations with Washington and slashing import duties are seen as sufficient to forestall a damaging escalation in bilateral trade tensions.

Trump has announced that the reciprocal tariffs will be applied globally without exemptions on Wednesday, impacting all trading partners, including India. The measure is aimed at matching the higher tariff rates that Washington’s trade partners impose on US exports.

Last month, the Trump administration announced 25 per cent tariffs on imports from Mexico and Canada, along with fresh duties on Chinese goods.

India has also come under Trump’s scrutiny because its import tariff rates are among the highest in Asia-Pacific.

On Monday, Karoline Leavitt, the White House press secretary, listed India as one of the countries that imposed high tariffs on US goods. Leavitt told reporters: “It’s time for reciprocity, and it’s time for a president to make a historic change, to do what’s right for the American people.”

Despite the threat of blanket tariffs, the US was unlikely to target India immediately, analysts said. New Delhi’s recent tariff cuts and diplomatic overtures – coupled with the prospect of a bilateral trade agreement in September – would likely have convinced Washington to hold fire on such a move, at least for now, they added.

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