How Unfair Are Donald Trump’s Tariffs?

Donald Trump’s announcement of reciprocal tariffs has sent shockwaves through global markets, with India facing a 26% tariff. Experts question the methodology behind these tariffs, suggesting the numbers may not reflect actual trade barriers accurately.

What Should India Do?

India is advised to focus on increasing imports from the US and negotiating a comprehensive trade deal. Experts suggest leveraging India’s lower comparative disadvantage and focusing on sectors where it retains a competitive edge.

India’s Comparative Advantage Explained

Despite the challenges, India’s lower tariff rate compared to other countries could offer an advantage, especially in sectors like textiles and electronics manufacturing.