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<h1>Navigating Trade Winds: How US Pressure is Reshaping India's Tariff Strategy</h1>
The assertive trade policies of former US President Donald trump placed considerable strain on global economic relationships, notably compelling India to reassess its long-established approach to import duties. For decades, India had strategically employed tariffs as a tool for economic development, a practice that successive administrations in New Delhi had been reluctant to significantly alter.
Historically, India's inclination towards higher tariffs stemmed from a desire to foster nascent domestic industries and promote self-sufficiency across key sectors. This protectionist stance, deeply rooted in post-colonial economic thought, aimed to shield local producers from international competition, allowing them to mature and become globally competitive over time. Think of it like nurturing young saplings in a greenhouse, shielding them from harsh weather to ensure strong growth before exposing them to the open field of global commerce.
Though, the Trump governance's "America First" agenda directly challenged this paradigm. Driven by a focus on reducing trade imbalances and safeguarding American jobs, Washington initiated a series of trade disputes, frequently leveraging tariffs as a primary instrument of negotiation. This new approach from the US, a major trading partner and significant export market for India, created considerable pressure on Prime Minister Narendra Modi's government to reconsider its trade barriers.
<p>This pressure manifested in various forms, including direct dialogues and the threat of reciprocal tariffs on Indian exports to the united states. As an example, sectors like steel and <a href="https://worldnews-today.com/fed-trump-tariffs-inflation/" title="Trump Tariffs a 'Significant' Cause of Inflation, Fed Chair Says">aluminum</a>, along with agricultural products, became focal points in the trade discussions. The US administration argued that India's tariffs were unfairly restricting access for American goods, hindering bilateral trade and contributing to the trade deficit. This situation can be likened to a global chess game, were the US,