India-US trade relations need a reset. Dispel misperceptions, strike a new deal

The resurgence of tariffs as a critical foreign policy tool for the United States (US) is a departure from one of its long-upheld commitments towards free trade. The United States Trade Representative (USTR)’s June 7 announcement regarding a trade action, following its Section 301 investigation of Digital Services Tax (adopted by India, Austria, Italy, Spain, Turkey, and the United Kingdom), is a step in this direction.
However, the tariff escalation will only be effective after 180 days to allow negotiations on the proposed global tax framework. India has tentatively backed the framework, but its final decision will depend on the availability of sustainable tax revenue for developing countries as part of the final deal.