As Washington’s 50 per cent tariff on India took effect on Wednesday, among the highest in place against any country, New Delhi has settled on a hedging strategy – keep seeking a trade deal with Washington while actively searching for alternative trading partners.
US President Donald Trump’s harsh move against Indian imports saw the Asian giant launch an urgent diplomatic push to route trade around the US – including with Brazil, China, Russia, Britain, Japan, Australia and the EU.
Indian officials are expected to host a series of meetings with industry leaders and global trade counterparts in coming days, aiming to mitigate the impact of the new US tariffs, which threaten up to US$48 billion in exports to the US.
Despite rising tensions, however, Washington and New Delhi have maintained a cautiously optimistic tone, signalling openness to resolving their differences. New Delhi has continued to engage in backchannel efforts to get its message across in Washington through US lawmakers and the influential Indian-American business community.
US Treasury Secretary Scott Bessent, a key negotiator on the US side, said on Wednesday it was not just Russian oil but the slow pace of negotiations. India “tapped us along” on tariff talks but “at the end of the day we will come together”, he told Fox News.
