USA Trade Deal: Rhetoric vs Reality

The Government is gloating over the recent trade deal with the USA,
projecting it as beneficial for all. A natural question arises: how does
this agreement compare with the so-called “mother of all deals” with the
European Union and with other trade arrangements concluded recently?

The USA has lately been courting Pakistan for various strategic
reasons—often at India’s expense. Yet India remains an indispensable
partner for the US in counterbalancing Russia, China, and North Korea.
Despite all rhetoric and filibustering, the USA cannot simply dispense with
India.

India, to its credit, has handled negotiations with the USA in a silent,
cautious, and calculated manner. This restrained approach itself has sent a
strong signal—even to a mercurial leader like Donald Trump.

Trade tariffs must be genuinely reciprocal. Earlier tariff levels ranging
between 2% and 5% were far more reasonable than steep hikes touching 18%,
especially when compared with concessions extended to other nations.
Current bilateral trade stands at around USD 140 billion, and promises to
scale this up to USD 500 billion within five years appear unrealistic and
overly ambitious.

India has steadily diversified its trade basket, including defence
acquisitions and strategic partnerships. The USA is no longer India’s
preferred or sole export destination. Moreover, the uncertainty surrounding
US policy—particularly under Trump—raises serious concerns about its
reliability, especially when India faces aggression or coercion from China,
often aided by Pakistan.

The USA has specifically targeted India on sensitive fronts: H-1B visas,
manufacturing under “Make in India,” deportation threats, and persistent
scrutiny of Indian CEOs leading global corporations. Prolonged negotiations
and strained relations suggest that recent trade deals are primarily skewed
in favour of American interests. India’s silence on tangible gains only
reinforces this suspicion.

India, however, is the world’s fastest-growing major economy and possesses
inherent strengths to withstand economic or political coercion—from the USA
or any other power. China, the UK, and several other nations have
proactively opened doors through universities, work visas, employment
opportunities, favourable import-export duties, technology transfers, and
joint manufacturing ventures—all of which bode well for India’s long-term
growth.

One must also consider the risks of importing uneconomical oil, which could
severely strain India’s finances. If Russia—a long-standing and trusted
ally—were to curtail arms supplies in retaliation, where would India turn?
Meanwhile, new global alliances are steadily forming, gradually diluting
American dominance as the sole superpower. Ironically, Trump’s aggressive
tariff wars may have accelerated China’s rise rather than contained it.

Strategic patience, diversification, and self-reliance—not
triumphalism—should guide India’s trade diplomacy.
Isolating , ignoring humiliating India as also alienating its allies os
counter productive to strategic  partnerships The Venezuela  incident and
threats to Iran, Mexico ,   Columbia, Canada, Cuba   Greenland are
contentious outbursts that USA is fritteing away reliable cooperation
Nelson Lopes
Chinchinim
















Nelson Lopes
Chinchinim
https://lopesnelsonnat.wordpress.com

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