Now that the full 50% US tariffs are in effect, the ball is in New Delhi’s court. India must now decide how to respond to Washington’s aggressive trade posture, and its options range from retaliation to diplomatic engagement.
One option is direct retaliation. India could impose its own tariffs on American goods, targeting key US exports like agricultural products or motorcycles. This would escalate the trade dispute but would be a strong assertion of its economic sovereignty.
Another option is to challenge the US at the World Trade Organization (WTO), arguing that the tariffs are discriminatory and not compliant with international trade law. This is a long process but would place the dispute within a rules-based framework.
A third path is to pursue quiet diplomacy, continuing to engage with the White House to seek a resolution while simultaneously strengthening trade ties with other partners to mitigate the economic damage. The revelation of the US-Russia talks gives Indian diplomats a powerful point of leverage in these discussions, highlighting American hypocrisy.