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COVER STORY OCTOBER 03, 2025 | The Indian Eye 5

dian firms are pushed into invest-
ing heavily in U.S. manufacturing,
it could weaken India’s plans for
self-reliance and global leadership in
the sector.
Inside South Block, officials are
weighing the response. India has tra-
ditionally avoided escalating trade
spats with Washington, preferring
patient diplomacy. But the scale of
the tariffs leaves little room for pas-
sivity. One option under discussion is
to take the matter to the World Trade
Organization, though Trump’s record
of ignoring WTO verdicts makes that
a shaky bet. Another is targeted re-
taliation — raising duties on U.S.
agricultural imports or slowing down
defense procurement. Both, howev-
er, carry the risk of provoking further
escalation. Trump welcomed Pakistan’s Prime Minister Shehbaz Sharif and the country’s powerful army chief, General Asim Munir,
The more likely strategy, diplo-
mats say, is to link trade grievances for a closed-door meeting in Washington this week (Agency)
with broader strategic discussions.
“Trump uses tariffs as bargaining bly earlier this month, External Af- with India rather than being distract- ensuring that American contractors
chips,” said a former Indian trade ne- fairs Minister S. Jaishankar stressed ed by Pakistan. “Pakistan cannot have a stake in maintaining good
gotiator. “If India retaliates blindly, that terrorism remained a “perennial help America balance China,” said relations. And through its powerful
it plays into his hands. The smarter disruptor of peace.” Without naming a retired Indian ambassador. “Only diaspora in the United States, India
move is to seek concessions in other Pakistan, he made it clear that India India can do that, and Washington hopes to influence the domestic de-
areas, like defense cooperation or would continue to expose its neigh- knows it.” bate, particularly in states where In-
technology transfers, while showing bor’s duplicity. At the same time, of- Managing Trump’s unpredict- dian-American voters and businesses
that India remains indispensable to ficials in New Delhi are urging Amer- ability will not be easy. Unlike Eu- carry weight.
U.S. interests.” ican stakeholders to recognize India’s rope, which can resist tariffs collec- Behind all of this looms Chi-
While the tariff shock is painful, greater value. The argument is sim- tively through the European Union, na. Trump’s tariffs on India and his
the revival of Washington’s embrace ple: for Washington, Pakistan may India has to negotiate bilaterally. But outreach to Pakistan cannot be sep-
of Pakistan is politically more sensi- serve as a short-term tactical partner; New Delhi has developed a hedging arated from the broader U.S.–Chi-
tive for New Delhi. Trump’s history for India, it is a permanent security strategy that combines economic re- na rivalry. For Washington, keeping
with Islamabad is one of contradic- threat. silience, defense cooperation and di- multiple options open in South Asia
tions. In his first term, he accused To bolster its case, India is also aspora diplomacy. Domestically, Mo- is part of the chessboard. For New
Pakistan of “lies and deceit,” only to pointing to its role in the Indo-Pacif- di’s Atmanirbhar Bharat initiative is Delhi, the challenge is to demon-
later hail it as a partner in the Afghan ic. By stepping up naval cooperation pushing for greater self-reliance and strate its indispensability in contain-
peace talks. The meeting with Shar- with the United States, Japan and diversifying export markets towards ing Beijing. India has already posi-
if and Munir suggests that Pakistan Australia under the Quad frame- Europe, Africa and Latin Ameri- tioned itself as a key player in supply
is once again back in Washington’s work, New Delhi is highlighting the ca. In defense, India has increased chain resilience, critical minerals
playbook, at least tactically, as the strategic benefits of deepening ties joint ventures with U.S. companies, partnerships and maritime security.
U.S. recalibrates its options in the re- By casting itself as the “swing state”
gion following the chaotic withdraw- of global geopolitics, India is signal-
al from Afghanistan and growing ing that even Trump’s transactional
tensions with China. instincts should not sideline New
For India, the timing could not Delhi.
be worse. Prime Minister Narendra The road ahead will be rocky.
Modi’s government has spent years Tariffs threaten to weaken India’s
exposing Pakistan’s links to terror- most successful global industry, and
ism on global platforms and build- Washington’s flirtation with Pakistan
ing consensus that cross-border mil- is a reminder of how quickly U.S.
itancy is the biggest threat to peace foreign policy can shift. But few in
in South Asia. Any sign of renewed New Delhi believe this amounts to
U.S. indulgence towards Pakistan a rupture. The structural logic of the
risks blunting that diplomatic cam- India–U.S. partnership — shared
paign. The secrecy surrounding the concerns about China, converging
Trump–Sharif–Munir meeting has interests in technology and defense,
only fueled speculation in New Del- and deepening people-to-people ties
hi about what might have been dis- — remains strong.
cussed — from counterterrorism co- As one veteran diplomat put it,
operation to military aid. “With Trump, turbulence is guaran-
In response, India is doubling People under the aegis of Indian Industry Trade Delegation protest against the imposition of 50 teed. The real test for India is not to
down on its established playbook. At percent tariff on India by US President Trump (ANI Photo) avoid it, but to turn that turbulence
the United Nations General Assem- into leverage.”

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