India, the Multilateral Order & Trump’s Tariff War 2.0
“Tariffs imposed. Treaties disregarded. Institutions hollowed. Can India afford to remain a bystander?”
✍️ By: Suryavanshi IAS Team
🔎 Context: The Trump-II Doctrine and India’s Wake-Up Call
On August 1, 2025, U.S. President Donald Trump signed an executive order imposing 25% tariffs on Indian exports, citing India's continued purchases of Russian military and energy equipment. He also issued an additional penalty, though not detailed, for New Delhi's defiance of U.S. "strategic alignment expectations."
These developments have reignited the debate over the fate of global multilateral institutions and the future of India’s foreign trade strategy in a world shifting towards economic unilateralism and bilateral coercion.
🌍 Multilateralism Under Threat: What’s Being “Gutted”?
According to senior Congress leader Jairam Ramesh, the World Trade Organization (WTO) and World Health Organization (WHO) — vital to India’s strategic and economic interests — are being “destroyed” by the Trump administration’s isolationist policies.
President Trump’s track record includes:
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Withdrawal from the Paris Climate Agreement
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Exit from UNESCO
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Paralysis of the WTO Appellate Body
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Disengagement from the WHO during the COVID-19 crisis
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Imposition of unilateral tariffs, bypassing multilateral dispute mechanisms
For a country like India — which relies on rules-based global systems to protect its developmental interests — this erosion is not just disturbing but dangerous.
🇮🇳 India’s Stakes in the Multilateral Order
India’s foreign policy doctrine has historically rested on the principle of strategic autonomy, yet with a commitment to multilateralism. Its global rise has been supported by institutions like:
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WTO: to protect against arbitrary tariffs and defend agricultural interests
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WHO: to access public health expertise and global support
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UNESCO, UNFCCC, UNHRC: to ensure cultural, climate, and human rights security
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Paris Agreement: for climate financing and green transition assistance
In an increasingly fragmented global order, India cannot afford to remain a mute spectator. Strategic silence may buy time, but it also erodes credibility.
📜 Relevant Previous Year UPSC Questions
Mains 2021 (GS-II):
"‘Multilateralism is under strain’. In the light of recent global developments, discuss the relevance of a rules-based multilateral trading system."
Mains 2020 (GS-II):
"What is the significance of Indo-U.S. relations in the current global scenario? What are the areas of convergence and divergence?"
Mains 2019 (GS-II):
"The US is facing an existential threat in the form of China, that is contesting for global hegemony. In this context, discuss the status of Indo-US relations."
🧭 Implications for India: Navigating the New Normal
1. Trade Defensiveness Is Not Enough
India has merely stated that it will “examine implications” and “safeguard national interest”. In a geopolitical environment where geoeconomics is weaponized, reaction alone is inadequate.
2. Strategic Balancing Is Now Tactical
India’s balancing act between Russia and the U.S. is under stress. The S-400 missile system deal, oil imports from Russia, and membership in BRICS+ and SCO are red flags for Washington. But surrendering strategic autonomy would come at a domestic political and economic cost.
3. India Must Champion Multilateral Reform
Rather than retreat into silence, India must take leadership in advocating for WTO reform, climate justice, and an inclusive digital global order. Its presidency of the G20 in 2023 was a good step — but it must be followed by concrete diplomatic activism.
🏛️ What Should Be India’s Way Forward?
✅ 1. Strengthen South-South Cooperation
Build deeper alliances with Africa, ASEAN, Latin America to diversify trade and reduce vulnerability to U.S./China policy swings.
✅ 2. Reform WTO From Within
Take initiative with EU, Brazil, South Africa, and others to revive the dispute resolution system and check tariff unilateralism.
✅ 3. Boost Atmanirbhar Bharat with Open Eyes
Self-reliance should not translate into economic isolation. India must invest in export competitiveness, FTAs, and digital trade negotiations.
✅ 4. Parliamentary Oversight of Strategic Deals
The penalty over Russian arms imports shows the risk of strategic drift. Parliamentary committees should review defense-energy deals with transparency and foresight.
✍️ Conclusion:
“Multilateralism is not a moral luxury. It is a strategic necessity.”
India stands at a geopolitical crossroads. Between strategic silence and strategic assertion, the time has come to redefine its role in global institutions. It must choose to lead in reform, not lurk in slogans.
As Donald Trump reshapes the world order through tariffs and treaties, India must ask — will it be a rule-maker, a rule-follower, or simply a rule-sufferer?
📌 For UPSC Aspirants:
Mains Answer Writing Tip:
Use this structure in GS-II:
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Introduction with context (Trump’s tariff)
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India’s multilateral legacy
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Impact analysis (WTO, WHO, Paris Agreement)
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Way forward with reforms
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Conclusion with a value-based or constitutional reference
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