Trump's tariff may seem severe, but India not worse-off than nations that signed trade deal: GTRI

US President Donald Trump's announcement to impose a 25 per cent tariff and penalty on Indian goods may seem severe but the country is not in a worse position than nations that signed trade deals with Washington, think tank GTRI said on Wednesday.

The Global Trade Research Initiative (GTRI) said the UK, the EU, Japan, Indonesia, and Vietnam now face elevated tariffs, and in return, have given sweeping concessions --zero tariffs on US farm goods, massive investment pledges, and purchases of American oil, gas, and arms.

India has made no such concessions, it added.


"While Trump's announcement of a 25 per cent tariff plus penalty on Indian goods appears harsh, a closer look shows that India is not significantly worse off than countries that did sign deals with the US," GTRI Founder Ajay Srivastava said.

He added that India did not walk away from the deal and it negotiated in good faith but refused to cross its red lines particularly on agriculture, where over 700 million livelihoods are at stake.

Trump's justification for India's tariffs, trade barriers, and ties with Russia does not stand up to scrutiny, he said, adding that India's tariffs are WTO-compliant, non-tariff barriers are common globally, and discounted Russian oil has helped India manage inflation during global volatility.

"India is not alone; over 90 countries face similar US pressure. A deal may still emerge, but only on fair terms. For now, India's principled stand has avoided the trap of a one-sided deal -- and that's a success," he added.