All Things Policy India–US Trade in the Trump 2.0 Era
May 12, 2025
In this dialogue, Anupam Manur, an international trade expert and economics professor, shares insights on the evolving India-US trade dynamics during Trump's second term. He discusses the potential for significant trade agreements and emphasizes India's eagerness to reduce tariffs. The conversation also touches on the complexities of trade policies, especially how local agricultural interests balance against liberal agreements. Manur highlights the dual nature of trade, exploring the relationship between national sovereignty and economic growth, and the importance of fair trade.
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Liberal Trade Spurs Manufacturing
- A liberal trade policy fosters investment and competitiveness by enabling access to foreign inputs and competition.
- Restrictive trade policies harm economic growth and job creation in manufacturing sectors.
Guide to Practical Trade Policy
- Maintain low, steady tariffs to avoid rent-seeking and promote fair trade.
- Use trade policy narrowly for national security and anti-dumping measures while promoting trade through agreements.
Understanding U.S.-India Trade Imbalances
- Trade imbalances exist, but U.S. trade deficits reflect economic factors like stagnating manufacturing and innovation.
- Tariff differentials disadvantage U.S. exporters in India, fueling American trade grievances.