India to resist US trade pressure after risk to core sectors says report
By Anjali Sharma
WASHINGTON – The Global Trade Research Initiative on Monday warned in its new report issued that India must resist mounting trade pressure from the United States under President Donald Trump and avoid compromising its core sectors, particularly agriculture,.
The think tank cautioned that entering a trade agreement under duress could lead to “irreversible consequences,” especially given the uncertainty surrounding the continuity of such deals in a volatile US political landscape.
The GTRI report stated “India should stay the course and avoid trading away core sectors like agriculture. A hasty deal under pressure could have irreversible consequences, especially when such agreements may not survive the next shift in US politics”.
The report came after sustained pressure from Washington, which has been pushing multiple countries to sign what GTRI refers to as MASALA deals Mutually Agreed Settlements Achieved through Leveraged Arm-twisting.
It said that these one-sided arrangements typically require countries to reduce tariffs without equivalent concessions from the US, commit to fixed purchases of American goods, and still allow Washington the leeway to impose additional tariffs later.
The United Kingdom and Vietnam have agreed to such terms, while major economies such as Japan, South Korea, the European Union, and Australia have resisted. “Trump’s aggressive trade threats are losing credibility,” the report noted.
Trump administration has adopted punitive measures in response to limited progress.
On July 7, it imposed 25 per cent tariffs on imports from Japan and South Korea.
It threatened 30% tariffs on EU and Mexican products even as negotiations with those countries continue.
The report emphasized that India is not alone.
US is currently in trade negotiations with over 20 countries and is seeking concessions from over 90.
Most nations are pushing back, recognized that these politically driven deals offer little long-term certainty or fairness in international trade.
The GTRI urged India to maintain a cautious stance and prioritize strategic sectors.
“Agreements must be reciprocal, stable, and protect India’s policy autonomy,” the report concluded.
President Trump said that the US is close to reach trade deal with India.
His remarks came even as he announced tariffs on 14 nations, media reported.
