India Warned Against One-Sided Trade Deal with US Amid Tariff Uncertainty
Trump's tariff tantrums may leave India exposed to a 'one-sided' trade deal: GTRI
The Economic TimesImage: The Economic Times
India should refrain from rushing into a trade agreement with the United States, as the current tariff regime under President Donald Trump faces legal challenges. The Global Trade Research Institute (GTRI) cautions that India risks entering a one-sided deal without meaningful tariff concessions while the US grapples with an unpredictable trade policy.
- 01India is advised to delay a trade deal with the US due to ongoing legal issues with Trump's tariffs.
- 02The US Court of International Trade recently struck down Trump's 10% global tariffs, marking a significant legal setback.
- 03GTRI warns that any trade agreement may become one-sided, favoring the US without reciprocal tariff benefits for India.
- 04The unpredictability of US trade policy could disrupt global supply chains and increase costs for manufacturers.
- 05India should wait for a more stable US trade framework before entering into major agreements.
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The Global Trade Research Institute (GTRI) has advised India to avoid rushing into a bilateral trade agreement with the United States amidst ongoing legal challenges to President Donald Trump's tariff regime. The US Court of International Trade recently ruled against the administration's 10% global tariffs, a decision that could reshape the future of US trade policy. GTRI emphasized that the ruling, which struck down tariffs imposed under Section 122 of the Trade Act of 1974, signifies a shift back towards the World Trade Organization's Most Favoured Nation (MFN) tariff structure. This legal uncertainty raises concerns for India, as the US is currently resistant to lowering its MFN tariffs while pressuring India to reduce its own duties. GTRI founder Ajay Srivastava cautioned that any trade deal could result in India making significant concessions without receiving adequate tariff benefits in return. The think tank noted that the unpredictable nature of US trade policy could disrupt global supply chains and increase costs for manufacturers and consumers alike. As countries like Malaysia reassess their trade relations with the US, India is urged to wait for a more stable trade framework before committing to a major agreement.
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The uncertainty in US tariff policy could lead to increased costs for Indian manufacturers and consumers, as well as disrupt trade negotiations.
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