Tariff Tsunami of Tsunami: Why India Dodged the Bullet?

Washington D.C. - In a bold move that has rattled global trade, President Donald Trump has imposed steep tariffs on imports from Mexico, Canada, and China. While Mexico and Canada face a 25% tariff and China a 10% levy, India has surprisingly escaped unscathed. Given India’s contribution to the U.S. trade deficit, this exemption has raised eyebrows.  

The reason behind India’s exclusion appears to be strategic diplomacy. In a recent budget announcement, India slashed import duties on high-end motorcycles, benefiting American brands like Harley-Davidson. Import taxes on luxury cars and smartphone components were also reduced, directly favoring U.S. companies such as Tesla and Apple. These calculated concessions align with Trump’s push for India to buy more American-made products.  

Another factor at play is the growing defense cooperation between the two nations. Trump has urged India to increase its procurement of U.S. defense equipment, which could help balance the trade equation. By offering trade-friendly policies and strengthening military ties, India has skillfully avoided the tariff wrath that has befallen other nations.  

Meanwhile, Canada, Mexico, and China are preparing retaliatory measures, setting the stage for a global trade war. As tensions rise, India’s ability to sidestep punitive tariffs showcases its adept diplomatic strategy. The world is watching to see how other nations navigate this new economic landscape, but for now, India has played its cards right—turning a potential economic storm into a diplomatic win.