Forget American Tariffs — Is this India’s Free Trade Moment?
For many, India is the “poster child” for the perils of high duties. Now, it has a rare chance to cut deals and reshape the global world order.
On an April afternoon, U.S. President Donald Trump stood at a podium, wielding a chart titled “reciprocal tariffs” like a courtroom exhibit. “India, very very tough. Very very tough,” he said. The number next to India? 26%.
“The prime minister…he’s a great friend of mine,” Trump added, referring to Narendra Modi. “But I said, ‘You’re a friend of mine but you’re not treating us right.’ You have to understand, we charge them almost nothing, for years and years.” He then rattled off who he perceived to be the worst offenders: “Bangladesh is 74%...Pakistan 58%, Sri Lanka 88%.”
Since news of the tariffs on Wednesday, April 2, the S&P 500 plunged over 12% — the worst week since 2020. Wall Street warned of a recession. Trump supporters split along free trade lines. Elon Musk posted videos of Milton Friedman, a free trade economist. Bill Ackman alleged Republicans were crashing the stock market to profit off of bonds. Meanwhile, others praised Trump’s “Liberation Day” tariffs, insisting America was finally taking a stand after decades of abuse. After Trump announced a 90-day pause on high “reciprocal” tariffs, the best way to understand this very not-free-trade world isn’t by focusing on the present — but subcontinental history.