Trump Signals Imminent India Trade Deal Amid Tariff Concerns
US President Donald Trump has indicated a trade deal with India is near, offering hope to Indian exporters affected by high tariffs. However, concerns linger about Trump's unpredictable use of tariffs as a diplomatic tool, which may continue to pose risks for India. India seeks assurances that future tariff hikes will be avoided to ensure stable, long-term economic ties.
US President Donald Trump announced that a trade agreement between the US and India is forthcoming, creating optimism for Indian sectors such as pharmaceuticals and IT that have faced significant tariff barriers. Despite this positive development, uncertainty remains due to Trump's history of unpredictable trade policies, where tariffs have been used strategically beyond commercial issues, as seen in other cases like Brazil. India is particularly cautious about securing guarantees that shield it from future tariff increases, as the bilateral relationship relies heavily on predictability for sustainable investment and growth. Trump's tariff threats have extended beyond trade disputes to geopolitical and domestic political leverage, evidenced by his 250% tariff threat to India and Pakistan amid regional tensions. The prospective deal could mark a milestone in US-India economic relations but will only be effective with credible assurances of tariff stability, addressing the broader concern that tariffs continue to be wielded as a diplomatic currency rather than purely economic tools.
