US Offers Carrot and Stick: Trade Deals Hinged on Reciprocity
The Biden administration has unveiled a nuanced approach to international trade, subtly shifting away from blanket tariffs. Instead, Washington is now offering reduced tariffs on a case-by-case basis.
This conditional tariff reduction hinges on reciprocal benefits from partner nations. These benefits could include increased purchases of American goods, dismantling trade barriers, or significant investments in US industries.
The strategy represents a departure from previous, more uniformly applied tariff policies. It’s a calculated move aiming for mutually beneficial trade relationships.
This shift has significant implications for India. Negotiations are ongoing, and the success of this strategy will depend on India’s ability to secure favourable terms while balancing its own economic interests. The outcome will directly impact Indian exports and access to the crucial US market.
