New Delhi : The United States must adopt a pragmatic, UK-style strategy to secure a meaningful trade deal with India, experts caution, as President Donald Trump’s recent move to impose a 50% tariff on Indian imports threatens to derail decades of strategic partnership.
An analysis by Anna Mahjar-Barducci, published by the Australian Institute of International Affairs, underlined that coercive tariffs linked to India’s Russian oil imports could alienate New Delhi, a democratic powerhouse central to America’s Indo-Pacific strategy. Instead, Washington is urged to emulate the United Kingdom’s Free Trade Agreement (FTA) with India, signed in July 2025 after three years of negotiations, which advanced mutual prosperity without ignoring developmental needs.
The US tariffs, set to be enforced from August 27, are officially justified on India’s high trade barriers and discounted Russian oil purchases. Yet, experts highlight that India’s decisions stem from necessity, not defiance. With traditional suppliers diverted to Europe, Russian oil provided affordable energy security for 1.4 billion people. India’s Ministry of External Affairs clarified that these imports are driven by “market factors” to keep costs predictable. Critics point out the inconsistency, as Western nations continue importing Russian uranium, palladium, and fertilisers.
By contrast, the UK-India FTA eliminated tariffs on 99% of Indian exports, reduced duties on British whisky and automobiles, and facilitated professional mobility through a Double Contribution Convention. Projected to double bilateral trade to $120 billion by 2030, it also safeguarded India’s dairy and MSME sectors while promoting cooperation in digital trade, intellectual property, and sustainability.
The article warns that Washington’s confrontational approach risks pushing India closer to China, particularly ahead of Prime Minister Narendra Modi’s visit to Beijing for the SCO Summit on August 31. With India already diversifying defence imports away from Russia toward the West, punitive measures could unravel progress.
Ultimately, experts argue that trade deals thrive on collaboration, not coercion. A recalibrated Indo-US FTA, modeled on the UK framework, could unlock growth, create jobs, and strengthen trust while preserving America’s long-term interests in the Indo-Pacific.
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