India, Aug. 5 -- The impact of the US's 25% tariff on imports from India appears to be far less catastrophic than what some had predicted. Meanwhile, the trade deal with the US remains in negotiation, and there is every reason to expect that once talks advance, the tariff rate could be scaled down. Estimates suggest that the 25% tariff might translate into an annual impact of just $10-11 billion - a relatively modest impact.

With the American delegation scheduled to visit New Delhi later in August, both sides have ample opportunity to recalibrate their positions. Trade deals are shaped not by threats but by diligent negotiations between officials representing institutional interests of their respective countries. In that light, US Presid...