Bangladesh, Feb. 3 -- After nearly a year of uncertainty, brinkmanship, and tariff pressure, Washington and New Delhi have finally recalibrated their trade relationship. US President Donald Trumps announcement of a reduced 18 percent tariff on Indian exports, down sharply from the punitive 50 percent rate imposed last year, marks a turning point not only for Indias economy but also for the wider South Asian trade landscape.

The deal, unveiled through social media posts by Trump and Indian Prime Minister Narendra Modi, comes at a strategically sensitive moment. India has just finalized a trade agreement with the European Union, global supply chains remain fragile, and the United States is aggressively reshaping trade relationships through...