International Trade--Recalibrating Tariffs

Beyond Tariffs : Recalibrating U.S. Trade Strategy and India's Path Forward

CS. Raksha Sankhlecha

As global trade enters a new era marked by rising protectionism and strategic recalibration, the United States' introduction of sweeping reciprocal tariffs signals a profound shift in international economic policy. This editorial examines the broader implications of these measures--not merely as isolated trade tools but as part of a deliberate U.S. effort to reshape global trade dynamics. It also explores the critical choices facing India: from navigating immediate tariff shocks to rethinking its long-term trade and industrial strategy. With global supply chains in flux and multilateralism under pressure, India's response in this transformative moment will define its role in the next generation of global economic leadership.

1. Executive Summary

(i) Finalizing a bilateral trade pact with the U.S. could temper the disruptive effects of recent tariff measures on India and foster much-needed policy stability.

(ii) A strategic pivot toward diversified export markets, accelerated trade negotiations, and targeted efforts to correct existing trade imbalances will bolster India's economic resilience.