fredag 26. september 2025

How India can salvage its Trump trade deal

India’s recent trade plight should be instructive both for New Delhi about how to deal with the United States under Trump 2.0 and for other actors (most notably the European Union) about how to deal with India in trade negotiations.

To the first point, India should divert President Trump’s attention by making big, even implausible, pledges about energy and weapons purchase from and large-scale investment in the United States – a cynical but necessary game the Europeans and the Japanese also played to avert a trade melt down.

To the second point, EU negotiators should secure a trade deal with India as soon as possible by requesting concessions similar to those New Delhi would have been willing to give Washington – but without trampling on any red lines – now that India’s cards have been revealed by the Americans’ reckless negotiation tactic.