The reciprocal tariffs initiated by US President Donald Trump are bound to have lasting consequences on global trade and its structure as envisaged in the last 50 years. Irrespective of which side of the tariff debate one is, it’s unarguably a transformative moment in global economics if these reciprocal tariffs (if one may call them, given the simplistic calculation based on trade surplus each country has with the United States) remain as promised.

The tariffs emanate from Trump’s view that the US has been a net loser in globalisation—with deficits of about US$1 trillion annually—and this has led to de-industrialisation in the country. I won’t get into the merits/demerits of this view, but one can’t ignore the transformative nature of this moment. In this transformative moment, it’s important for Bharat to position itself in the best possible manner to maximise its advantages. How does one proceed? Here are some suggestions.

First, the single most important thing for Bharat to do is to focus on the bilateral trade agreement with the United States and maximise the benefits from it. Given the current Trump administration’s transactional approach to trade, it’s important to negotiate the levers of 1:1 relationship as much as possible. When PM........

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