Editorial: Tariffs and Tantrums — India’s dignified defiance

Bilateral relationships are nurtured not through diktats but through a shared understanding of each other’s economic realities

The days of unipolar dominance and bullying are over. Bilateral relationships are nurtured not through whimsical diktats but through a shared understanding of each other’s economic realities. India has shown tremendous maturity and restraint in dealing with the trade tantrums of an impulsive United States President Donald Trump, and its quiet defiance, in the face of an unreasonable and unjustified 50 per cent tariff on its goods, is finding resonance across the world. Despite the potential impact of American tariffs being very significant, India has done well to remain calm and balanced. It is estimated that the new tariffs could reduce India’s exports to the US by nearly 30 per cent and cut the GDP by more than half a percentage point. While refusing to succumb to American pressure, New Delhi has not slowed down its efforts to continue the negotiations for a trade deal, as the US negotiators are scheduled to visit India later this month for the sixth round of talks. It would be preposterous to assume that India would abandon its national interests, stop buying oil and other goods from Russia and open floodgates to American agricultural, marine and dairy products just to please Trump, who has weaponised tariffs to bully the nations into submission. India has clearly drawn the red line. Agriculture and dairy are the key sectors that concern the livelihoods of a large population of small and marginal farmers whose interests form the backbone of the country’s public policies.

While condemning India’s Russian oil purchases, the US continues to import Russian nuclear materials and fertilizers. The Trump administration maintains its own protective tariffs and massive subsidies under the banner of “America first,” even as it demands access to the Indian market. While insisting on shared values, US foreign policy remains deeply entangled in domestic populism and electoral posturing. The US must recognise that India will not behave like a treaty ally but will push back and assert its right to take sovereign decisions. It does not, however, mean that New Delhi will not value the partnership with the US, but the bilateral relationship, nurtured and strengthened over decades, should not be allowed to become hostage to a few trade issues. The relationship must evolve into a mature partnership that accepts selective convergence, managed divergence, and deep political decision-making on both sides. If Washington wants deeper cooperation, it must start by recognising India’s sovereign right to conduct trade with any country it wants. As the most prominent economy in the Global South, India’s demand for affordable and stable fuel is non-negotiable. To abandon the supply of Russian oil under diplomatic pressure from Washington would be politically disastrous. Any government would see such a move as a betrayal of core domestic interests. Despite the current rancour over the tariff issue, the US-India relationship is resilient enough to weather this storm. The area of cooperation is broad and ever-expanding.

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