Pakistan, July 10 -- The curious case of India's latest trade moves against the United States is a perfect study in tactical ambiguity: a balancing act that might yield a few short-term wins but risks a heavier cost in the long run. New Delhi, in the same breath, tells Washington that a "very big" bilateral trade deal is just around the corner. Yet it has also gone to the World Trade Organisation to formally challenge US tariffs, threatening retaliatory duties of its own. For anyone watching India's trade posture closely, the message is clear: keep the carrot in one hand and the stick in the other.

On paper, this is about America's 25% tariff on Indian passenger vehicles, light trucks and auto parts, imposed under the controversial Secti...