Trump corners India on tariffs | FT #shorts

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Navigating Trade Winds: How US Pressure is reshaping India’s Tariff Strategy

<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 &#039;Significant&#039; 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,

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