India Adapts Trade Strategy Amid Potential US Tariff Hike

Diversifying Trade Agreements

In response to the potential 50% import tariff by the United States under Trump's presidency, India is diversifying its trade strategy. The country has been actively pursuing and signing trade agreements with various nations to reduce its dependence on the US market. Recently, India signed trade deals with New Zealand, the United Kingdom, and Oman, marking significant steps in its economic diplomacy ¹

Strengthening Economic Resilience

According to Rajesh Agrawal, India's Commerce Secretary, the trade agreement with New Zealand was the third such deal in 2025, demonstrating India's proactive approach to expanding its global trade footprint. These agreements are expected to cushion the impact of any potential US tariffs on India's economy.

Implications for Global Trade

This strategic shift by India reflects the changing dynamics of global trade, with countries increasingly seeking to mitigate risks associated with protectionist policies. By forging new trade relationships, India aims to maintain economic stability and growth in the face of uncertain international trade environments.