Washington, D.C.: U.S. President Donald Trump has announced plans to impose “reciprocal tariffs” on India and China, potentially slashing India’s steel exports to the U.S. by 85%. The move comes as the rupee hits a record low, and India’s stalled free trade agreement (FTA) with the UK remains unresolved.
Lord Jim O’Neill, the economist behind the BRIC concept, suggests that Indian Prime Minister Narendra Modi may seek exemptions by offering trade-offs in infrastructure and technology. O’Neill believes Trump’s aggressive rhetoric is a negotiating tactic rather than a rigid stance.
Meanwhile, India’s economic trajectory faces new challenges. The rupee’s depreciation is largely driven by shifting U.S. interest rate expectations, not domestic policy. O’Neill advises focusing on inflation control and financial stability rather than reacting to currency fluctuations.
Regarding the India-UK FTA, O’Neill highlights key negotiation hurdles, including concerns over U.S. reactions, unresolved trade terms, and visa restrictions for Indian students. He sees strong potential in pharmaceuticals, health research, and green technology partnerships between the two nations.
