Trump’s climbdown

IT is rather atypical of US President Donald Trump to take his foot off the pedal. But that’s what he has done by announcing a 90-day pause on “reciprocal tariffs” for around 60 countries, including India and members of the European Union (EU). His surprise decision, which has brought relief to bruised global markets, indicates that Trump is not totally oblivious to adverse global opinion and voices of dissent at home. However, he has upped the ante against China, raising the tax rate on Chinese imports to 125 per cent. He seems to have realised that it’s safer and wiser to focus on one opponent than to antagonise scores of nations worldwide. Moreover, he looks keen to do a rethink if his actions imperil his Make America Great Again dream. But it’s anybody’s guess whether his apparently new-found wisdom will be marked by consistency.

India seems to have gained by playing the waiting game rather than taking an aggressive stand on Trump’s tariffs. At stake is the bilateral trade agreement that New Delhi and Washington are working on. India, which aims to increase its trade with the US by two-and-a-half times, has deftly avoided hitting the panic button. Amid the current reprieve, sustained negotiations will be required to ensure that India is not burdened with hefty tariffs in the long run.

China — which has vowed to fight the trade war to the end — has reached out to EU and ASEAN nations in a bid to form an anti-US front. It appears to have dawned on Beijing that it can’t confront America all alone. Interestingly, China is also making overtures to India, saying that “the two largest developing countries should stand together to overcome the difficulties”. India is smart enough to see through Chinese opportunism, but it will be a tricky tightrope walk, considering that China and the US are its biggest trading partners.

Editorials