Unlike low-tariff economies that have little left to concede, India has the headroom to negotiate aggressively without significantly upending its domestic sensitivities. It is worth recalling that the ostensible objective of US’s unilateral tariff action is to close its trade deficit for goods and to encourage manufacturing of goods in the US. That being so, the main thrust of the upcoming negotiations is likely to be tariffs.India has long been criticised for its high tariff walls, deemed outdated in a world chasing liberalised trade. Yet in a dramatic twist, what once looked like a drag on competitiveness may now be New Delhi’s sharpest strategic edge compared to its competitors who are in a rush to strike deals with the US. As President Donald Trump’s tariff-first diplomacy takes centre stage again, India’s protected tariff regime provides an unexpected lever that could define its negotiating power in the global trade arena.
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