India's big economy, small gains: Tariff lessons from Trump's America
Summary
Despite India's large economy and strategic importance, it secured higher U.S. tariffs under Trump compared to smaller countries due to lesser leverage in trade negotiations focused on tangible economic commitments.
Key Points
- India, despite being the world's fourth largest economy, faced the highest U.S. tariff rate of 50% under Trump.
- Smaller economies like Vietnam secured lower tariffs due to their significant market impact on U.S. industries.
- Countries that made large investment pledges or offered market access, like South Korea and Japan, secured better trade terms with the U.S.
- India's trade leverage could improve by offering expanded market access for U.S. firms and focusing on self-reliance and unique economic assets.
