Navigating Challenges: Creative Strategies for India to Address Trump’s Tariffs

Colombian President Gustavo Petro recently found himself at the center of a political storm, facing off against U.S. President Donald Trump. Petro’s bold stance included denying U.S. military planes carrying undocumented Colombian immigrants permission to land in his country. He even unleashed some harsh words against Trump, accusing him of being a “white-slaver” and claiming he aimed to “wipe out the human species.” Unfortunately for Petro, this showdown didn’t end well for him.

Despite his fiery rhetoric, the Colombian leader quickly backtracked. Just hours after his bold statements, Petro agreed to accept the return of undocumented Colombians, but under U.S. terms. This meant they would arrive on military planes, handcuffed and shackled. Many saw this as Petro’s dramatic fall from a national symbol of resistance to a figure of humiliation.

This serves as a reminder that challenging Trump’s tactics might look good on social media, but the reality can be quite different. Following this confrontation, the White House issued a stark message: “Today’s events make clear that America is respected again.” It was a clear sign that defying Trump could come with significant consequences.

In his second term, Trump seems to be adopting a tougher stance on countries he feels aren’t playing fair. He recently labeled India, China, and Brazil as “tremendous tariff-makers.” All his previous friendliness with India now feels distant as he threatens to impose tariffs instead.

Interestingly, while Trump criticized many countries, he praised British Prime Minister Keir Starmer. This raises questions about his intentions. Why was India, with whom Trump previously celebrated close ties, now in his crosshairs?

For India, navigating this new landscape will not be easy. Trump’s approach is uncompromising. His “America First” policy clashes with India’s strategy of maintaining its own path, known as strategic autonomy. Since the pandemic, countries have focused on strengthening their economies, but under Trump’s renewed power, India may find itself under pressure.

Trump has previously pointed out India’s high tariffs, calling it the “tariff king.” For example:

• Agriculture: Tariffs on almonds (17%) and apples (70%).
• Luxury goods: A staggering 150% tariff on imported alcoholic beverages.
• Technology: High duties on iPhones and laptops.
• Motorcycles: Tariffs can go up to 100% on luxury motorcycles like Harley-Davidson.
• Medical devices: Price caps on imported medical stents have raised concerns.

Trump might push for changes to these tariffs or impose retaliatory tariffs on Indian exports. Trade relations during Trump’s first term were complicated; while trade grew, tensions remained. In 2019, Trump revoked benefits India enjoyed, showcasing his tough stance. This trend is likely to continue.

India must protect its own industries, but it’s also faced with the need to expand exports in key sectors like pharmaceuticals and IT. As trade talks unfold, both sides will have to be careful to balance their interests.

Immigration is another contentious issue. Reports suggest that India may agree to take back under 20,000 undocumented citizens from the U.S. However, India has a significant number of undocumented immigrants, second only to Mexico. Trump’s focus on this issue may lead him to demand even more from India, which could create political trouble.

In 2022, bilateral trade between India and the U.S. reached nearly $192 billion, with India enjoying a trade surplus. However, Trump’s administration will likely look to correct this imbalance, pushing for greater access to Indian markets.

For India, responding effectively to Trump’s approach requires creativity and agility. Strengthening diplomatic relations and navigating the complex landscape will be essential. Opening key sectors to U.S. firms could provide India some room to negotiate.

In conclusion, India is at a crossroads. It must protect its autonomy while also engaging with the U.S. cleverly. With challenges looming, the next four years will require strategic thinking and diplomatic finesse.

(Syed Zubair Ahmed is a London-based journalist with extensive experience in the Western media.)

Disclaimer: These are the personal opinions of the author.