US-India Trade Deal Scrapped: Implications and Uncertainty
Introduction
The trade relationship between the US and India has been tumultuous since President Trump took office. While initially promising stronger economic ties, the recent scrapping of a trade deal by Trump has left the Indian government completely upset. The move has caught many by surprise, as the two countries have been working towards a closer trading partnership.
Key Details
The deal was said to include a reduction in tariffs on goods such as agricultural products and medical devices, benefiting both countries. However, the sudden change in course by Trump has left Indian officials scrambling to understand the reasoning behind the decision. The precarious nature of crafting an economic partnership with the mercurial Trump administration has once again been put on display. This is not the first time the US has pulled out of a trade deal with India, and it raises concerns about the future of trade relations between the two countries.
Impact
The scrapping of this trade deal has significant implications for both countries. India, which is currently facing an economic slowdown, was counting on this deal to boost their economy. The sudden turn of events has left them in a difficult position, as they will now need to find alternative solutions. This also raises questions about the future of US-India relations, as the trust and stability of the trade partnership have been shaken. It remains to be seen how this decision will affect the global economy and the future of trade negotiations
About the People Mentioned
Donald Trump
Donald John Trump, born June 14, 1946, in Queens, New York, is an American businessman, media personality, and politician. He graduated from the University of Pennsylvania’s Wharton School in 1968 with a degree in economics. In 1971, he took over his family’s real estate business, renaming it the Trump Organization, through which he expanded into building and managing skyscrapers, hotels, casinos, and golf courses. Trump gained widespread fame as the host of the reality TV show *The Apprentice* from 2004 to 2015, which helped establish his public persona as a successful entrepreneur. Trump entered politics as a Republican and was elected the 45th president of the United States, serving from 2017 to 2021. His presidency was marked by significant policy actions including tax cuts, deregulation, the appointment of three Supreme Court justices, renegotiation of trade agreements (notably replacing NAFTA with the USMCA), and a focus on immigration control including border wall expansion. He withdrew the U.S. from international agreements such as the Paris Climate Accord and the Iran nuclear deal, and engaged in a trade war with China. His administration’s response to the COVID-19 pandemic was criticized for downplaying the virus’s severity. Trump was impeached twice by the House of Representatives—first in 2019 for abuse of power and obstruction, and again in 2021 for incitement of insurrection—but was acquitted by the Senate both times. After losing the 2020 election to Joe Biden, Trump challenged the results, culminating in the January 6, 2021, Capitol riot. He remains a central figure in American politics, having won the 2024 presidential election and returned as the 47th president in 2025, continuing to promote policies aimed at economic growth, border security, and military strength[1][2][3][4].
About the Organizations Mentioned
World Trade Organization
## Overview The World Trade Organization (WTO) is the primary international body dedicated to regulating and facilitating global trade. Established in 1995, it succeeded the General Agreement on Tariffs and Trade (GATT), which had governed trade since 1948. The WTO’s core mission is to ensure trade flows as smoothly, predictably, and freely as possible by providing a framework for negotiating trade agreements, settling disputes, and monitoring national trade policies[3]. Its headquarters are in Geneva, Switzerland. ## What the WTO Does The WTO operates through a set of rules negotiated and agreed upon by its 164 member countries. These rules cover goods, services, and intellectual property, aiming to reduce trade barriers such as tariffs, quotas, and subsidies. The organization also provides a platform for governments to negotiate trade deals and resolve disputes through a structured legal process, helping to prevent trade wars and maintain stability in the global economy[3]. Importantly, despite recent tensions, about 72% of global goods trade still operates under core WTO “most favored nation” tariff terms, underscoring the organization’s ongoing relevance[1]. ## History and Key Achievements The WTO was founded to create a more robust and enforceable system than GATT, which lacked a formal institutional structure. One of its landmark achievements is the creation of a binding dispute settlement mechanism, which has resolved hundreds of trade conflicts since 1995. The WTO has also overseen major trade liberalization rounds, such as the Uruguay Round (1986–1994), which expanded the scope of global trade rules to include services and intellectual property. ## Current Status and Challenges Today, the WTO faces significant challenges. Global merchandise trade is expected to decline slightly in 2025, partly due to rising protectionism and unilateral tariff actions by major economies[2]. The United States, under President Trump, has imposed across-the-board tariffs in 2025, heightening trade frictions and complicating multilateral cooperation within the organization
