New Delhi, May 1 -- Even before the US paused its Liberation Day tariffs for three months until 9 July, it was clear that those levies would have to be periodically updated since they were based on annual (flow) data. Any country on the high-tariff list can reduce its bilateral trade surplus with the US and demand a recalibration of its tariff.

It is important to remember this, because long-term export strategies based on the comparative advantage we might temporarily enjoy vis-a-vis Malaysia or Vietnam, just because they were charged higher tariffs in the first round, could come to grief. Even China has been promised a tariff drop from 145% (the 245% number is just for one or two products for which the new levy was added on to a pre-exi...