As Trump expands tariff net, why questions loom over the effectiveness of a trade deal with the US

Multiple Questionmarks

Deborah Elms, Head of Trade Policy at the Singapore-based Hinrich Foundation, said that fresh sectoral tariffs under Section 232 raise several questions about whether or not they are covered under any existing bilateral trade deals. The US has already pushed for steep asks from India to sign a trade deal. Differences over India’s purchase of Russian oil have already been a flashpoint between India and the US.

On expanding use of Section 232, Simon Evenett, Professor at Switzerland-based IMD Business School, said that the US is fast expanding national security investigations on a range of products that raised several concerns. “The choice of Section 232 over other trade tools isn’t accidental. According to legal experts, Section 232 tariffs are difficult to challenge in courts—unlike the IEEPA tariffs currently facing Supreme Court review. It’s a calculated move to create more legally bulletproof trade barriers,” Evenett said.

Evenett emphasised that there are 12 concurrent Section 232 investigations across sectors from semiconductors to wind turbines, and this represents a “fundamental shift toward prioritising security concerns over openness, customer choice, and competitive pricing”. “Rather than the broad-based tariff announcements we saw in April 2025, this Administration is now deploying a slice-by-slice approach. This likely reflects lessons learned from adverse financial market reactions to blockbuster tariff packages,” he said.

Experts also said that several Section 232 investigations could have a hidden agenda, such as in the case of robots. While national security concerns around robotics are legitimate, there’s potentially another motive at play. “Imposing high robot tariffs (historically in the range of 25-100 per cent under Section 232) would artificially inflate domestic robot prices, pushing companies toward hiring local workers over automation—a backdoor employment creation strategy,” Evenett said.

India’s Stance

In signs that India may not receive relief for Section 232 tariffs under the trade deal, New Delhi has begun approaching the WTO against sectoral tariffs and has also indicated retaliation. Minister of State for Commerce and Industry Jitin Prasada, in a written reply to a parliamentary question earlier this year, said that the US has refused discussions in the WTO over steel and aluminium tariffs, citing national security.

“India has accordingly reserved its right to suspend substantially equivalent concessions (right to impose equal trade measures in response) due to the US’s non-compliance with its obligations under the Agreement on Safeguards (AoS),” Prasada said.

The Commerce and Industry Ministry on Friday said that India and the US “exchanged views on possible contours of the deal” and it was decided to continue the engagements with a view to achieving early conclusion of a mutually beneficial Trade Agreement. “The Minister had meetings with Ambassador Jamieson Greer, United States Trade Representative and Sergio Gor, U.S. Ambassador-designate to India. Apart from meetings with the U.S. Government representatives on bilateral trade matters, the delegation held discussions with key U.S.-based businesses and investors on promoting trade and investment between India and the United States,” the Ministry said.

The delegation had constructive meetings with the U.S. Government on various aspects of the deal. Both sides exchanged views on possible contours of the deal, and it was decided to continue the engagements with a view to achieving early conclusion of a mutually beneficial Trade Agreement.