'India's remarkably smart approach to tariffs could...'

Wed, 09 April 2025

13:36

India's decision to prioritise diplomacy over retaliation in response to the Trump administration's tariff announcements could pave the way for successful bilateral trade negotiations, said Mark Linscott, senior advisor on trade at the US-India Strategic Partnership Forum (USISPF).

In an interview with PTI Videos, Linscott, who previously served as the former assistant US trade representative, praised India's strategy as "remarkably smart", arguing it positions the country favourably for long-term economic benefits. US President Donald Trump announced sweeping tariffs on a range of imports, including from India, sparking global market unease and fears of a potential trade war.

Despite the uproar by opposition parties, Prime Minister Narendra Modi-led government refrained from imposing retaliatory tariffs, a move Linscott described as "the right one".

He warned that retaliation often escalates tensions, citing the Trump administration's history of responding to counter-tariffs with further measures, creating a "downward spiral".

"India's neutral and diplomatic response, though politically costly domestically, has laid a strong foundation for upcoming negotiations," Linscott said. The two nations have committed to negotiating a bilateral trade agreement, with an initial focus on resolving tariff disputes quickly. -- PTI

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