The latest escalation of US tariffs on Indian imports once again proves the adage: nations have no permanent friends and no permanent enemies, only permanent interests. Not too long ago, there appeared to be bonhomie in our relations with the US; suddenly now a trade war is upon us.

It will be useful to separate the 25% tariffs announced against most Indian goods as part of President Trump's America First Policy from the additional 25% announced on August 6 as a penalty for continuing to buy Russian oil.

Regarding the first tranche of sanctions, as Prime Minister Narendra Modi categorically stated, “Whatever it takes, India will not compromise on the interests of its farmers, livestock keepers and fishermen.” There will be red lines in trade negotiations on both sides. What we need is skilful protection of our core strategic interests. Neither reckless bravado nor meek surrender will serve our interests.

We can yield on certain pet peeves of Trump when there are no real stakes for us. For instance, reducing tariffs on Harley Davidson motorbikes should not be a problem. We must trust the Indian consumer’s discerning approach; we are very price-sensitive and want good value for our money. Lowering tariffs is unlikely to substantially increase the import of luxury branded goods when equal or better products are available in the market.

We should stand firm on tariffs on commodities like cooking oil. India is the world's biggest importer; almost 60% of our consumption is imported. Nearly 25 million farmers raise oilseed........

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