Tariff Tug-of-War: The Future of US-India Trade Relations

US President-elect Donald Trump's remarks on imposing reciprocal tariffs on India have sparked concerns over potential violations of global trade rules. While India's tariffs comply with WTO standards, Trump's proposed tariffs may breach them. The situation requires a 'wait and watch' approach as India's trade strategy is under review.

US President-elect Donald Trump's remarks on enforcing reciprocal tariffs against India have raised eyebrows among international trade experts. Trump's assertion that India imposes excessively high tariffs suggests a potential showdown between the two countries.

Indian officials, however, urge caution, advocating for a 'wait and watch' approach. Director General of Foreign Trade Santosh Kumar Sarangi highlighted India's compliance with WTO norms, contrasting Trump's potential violation of these global rules.

Think tank Global Trade Research Initiative (GTRI) emphasizes the need for India to review its tariff structure strategically. While India's average tariff is higher than the USA's, it remains comparable to other major economies. With Trump potentially breaching WTO commitments, India must be ready to respond effectively.

(With inputs from agencies.)