India badly needs a ceasefire with Trump on the trade front. This ceasefire is far more critical for lndia’s economy and its millions of unemployed and partially employed. Trump seemed to have started a trade war primarily targeting China early April which resulted in the US arbitrarily imposing high import tariffs on all its major trade partners, including India. https://thewire.in/trade/modi-needs-a-trade-ceasefire-with-trump
India today faces one of the highest tariffs of 25% which Trump announced on Wednesday (July 30). Most other major trade partners of the US such as EU, Japan, South Korea, Vietnam, Indonesia have managed to sign reasonable deals with tariffs ranging between 15% to 20%, which gives them a clear edge over India. China too has done a reasonable deal with much lower duties than originally imposed.
So as of August 1, which is Trump’s deadline for deals with nations, India stands quite isolated with one of the highest tariffs slapped on her. There is a double whammy as Trump has said more penal tariffs could come if India continues her special relationship with Russia in regard to crude oil purchases and defence imports. India’s national interest dictates she cannot afford to dilute relationship with Russia, especially on critical co-production of high tech defence items such as Brahmos missiles etc.
M K Venu
01/08/2025