Recent U.S. tariff moves—anchored in President Trump’s “apple-to-apple” mandate of matching any tariff India imposes—pose significant challenges for India. While the U.S. seeks to reduce its trade and fiscal deficits by mirroring foreign tariffs, the fallout for India could include reduced export competitiveness, a loss of tariff revenue, and mounting inflationary pressures. To mitigate these risks and maintain fiscal stability, India must adopt a multifaceted strategy that includes diplomatic, economic, and structural adjustments.
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