President Donald Trump’s decision to suspend most tariffs declared against countries that US trades with (except China) for ninety days and lowering them, in the meanwhile, to ten percent has come as a welcome if temporary relief. Trump was persuaded to do so by the ‘yippy and queasy’ response of many of his supporters to the stock market crash and rising prices. Significantly, also because of the mature response from most trading partner countries who expressed their willingness to renegotiate the tariff regime on a bilateral basis. How he described this to the media was entirely unbecoming of a head of state, but such language is normalised in a country that has rebounded against cultured sophistication after the ‘woke’ excesses of the Biden administration.
The Indian government was targeted by the opposition, particularly the Congress, for not ‘standing up’ to the tariff threat and ‘remaining silent’. However, the fact is that India was among the first countries to begin negotiations with the US in a mature and transactional manner to address what is a genuine matter of concern for all. This had the immediate impact of not just the announcement of a lower tariff rate as compared to many others, but even further concessions. India must keep the interests of its exporters and industries in mind, as well as maintain overall good relations because of its large Diaspora (that sends in huge remittances), as well as the students studying there. Hopefully, agreements will be arrived at that will prove mutually beneficial for India and the US.
India has been exploring free trade agreements for some time now with a number of countries but progress could not be made because existing advantages were sought to be retained. However, after the ongoing tariff shock, realisation has struck home that the situation can suddenly change, and stability can only be maintained by making the necessary sacrifices. While India, because of its large domestic market and sustainable economic growth is an attractive market, it also requires access to other markets for its own products and services. Efforts have to be made so that, as Khalil Gibran said, “nobody should go home from the market with empty hands”, if the market is to thrive. That applies to the entire world. It is expected that India, if it plays its cards right, can benefit from Trump’s disruptive behaviour. This includes having China’s exploitative tactics brought under control.
