India-US Trade Relations: A New Frontier

• India-US trade relations have shifted into uncharted territory due to the imposition of additional tariffs by US President Donald Trump.

• The weaponisation of tariffs has placed India at a disadvantage compared to competitors like Vietnam and Indonesia.

• The Narendra Modi government has pledged to protect its national interests, stating it will take all necessary actions.

• Despite potential concessions in certain segments, Delhi should maintain red lines in sectors like agriculture and dairy-politically sensitive areas.

• India’s purchase of discounted Russian oil was a pragmatic move to secure its energy supplies, but Trump’s increasing costs of continuing this trade must guide Delhi’s approach.

• The cost-benefit analysis of relying on one source of supply must be seen through India’s interests, not influenced by Trump.

• The grouping of India should be guided by India’s interests, not those of BRICS.