India-US Trade Deal: A Strategic Surrender

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The India-US interim trade deal raises questions on New Delhi’s willingness and ability to stand up to a global hegemon.

In September 2025, in a televised interview, Howard Lutnick, the United States Secretary of Commerce, summed up the Trump administration’s hostility to India. With characteristic arrogance, he said, India “should say their sorry,” exit BRICS and pledge allegiance to the US dollar. Soon, the Trump administration imposed 50 per cent tariffs on Indian exports under the pretext of ‘punishing’ India for buying Russian oil.

It was yet another display of erratic US trade and foreign policy; for context, the United States did not impose punitive tariffs on China, the largest buyer of Russian oil. Such coercive tactics highlight the risks in the US-India trade deal announced last week. It raises critical questions: Is this deal a strategic reset in a geopolitical global order shaped by the idea of Making America Great Again’? Does the India-US trade deal serve India’s long-term geo-economic and geo-strategic objectives?



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