Trump’s reciprocal tariffs: Time for India to rethink its trade policy
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1 month, 1 week ago

Trump’s reciprocal tariffs: Time for India to rethink its trade policy

Live Mint  

President Donald Trump of the US is tearing apart the multilateral trading system with his self-confessed love of tariffs, which he seems to imagine would yield huge extra revenues extracted from trade partners. If reciprocal tariffs are levied, India stands to benefit from lower US levies on many items whose exports matter to our economy, especially small and medium enterprises that employ more people than capital, relatively speaking, to create the same value. India has time till April, when US tariffs kick in, to finesse a strategic plan to cushion Indian exports from their impact. Globally, the first casualty of Trump’s idea of reciprocal tariffs will be the concept of ‘most favoured nation,’ which ensures that every country is treated on par with every other member of the World Trade Organization, except as part of a preferential trade pact among a subset of its members.

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