The real reason India’s getting tough on Donald Trump’s trade terms

India has been projecting itself as a cautious player in US President Donald Trump's global tariff war-measured, diplomatic, and reluctant to escalate. But that script is changing fast. This week, New Delhi lodged a formal complaint against the United States at the World Trade Organization, challenging what it described as “arbitrary and discriminatory” tariffs on Indian pharmaceutical and auto exports.It’s a rare move for India. More than a technical trade dispute, the WTO filing is a signal: India is no longer playing defense in its economic relationship with Washington. India is now willing to take the fight to the global stage, and in doing so, it is borrowing directly from China’s playbook, a Bloomberg report said.China’s influence, India’s awakeningThe timing isn’t coincidental. Just days earlier, the US and China announced a dramatic de-escalation after playing tit-for-tat in the tariff war. After Beijing hit back with retaliatory tariffs and disrupted US access to rare earth metals, Washington blinked. A deal was reached: US tariffs on Chinese goods were slashed from 145% to 30%."The US has chickened out,” read one widely circulated Chinese social media post, a Financial Times report said. “The US blinked first,” echoed Alicia García-Herrero, chief Asia-Pacific economist at Natixis.India seems to have taken note.WTO as battlefieldThe complaint filed in Geneva marks a clear escalation. It accuses the US of misusing the “national security” loophole to justify blanket tariffs, violating core WTO principles, and disproportionately targeting sectors where India has a strong export footprint-particularly pharmaceuticals and autos.This mirrors the legal arguments China used during earlier WTO showdowns under Trump’s first term. What’s new is India’s willingness to litigate instead of simply negotiate behind closed doors.India's rebuff on zero-tariff claim by TrumpOn Thursday, external affairs minister S Jaishankar said that trade talks between India and the United States are ongoing, with negotiations still underway.Earlier in the day, Trump had claimed that India had offered the US a nearly no-tariff deal on a reciprocal basis."They have offered us a deal where we're basically they're willing to literally charge us no tariff," President Trump said while addressing a news conference in Doha.Jaishankar, however, emphasised that any trade deal must be mutually beneficial and work for both countries."On the trade remarks. Let me say this that look between India and US trade talks have been going on, negotiations have been going on. In fact, we have, I think our team is just going at this point. These are very complicated negotiations. They are very intricate, intricate," he said.He added that no decision has been made yet and cautioned against premature judgments."Nothing is decided, you know. But any trade deal, any trade deal has to be mutually beneficial. Any trade deal has to work for both the countries, and I think that would be our expectation from the trade deal and until that is done, I think any judgement on it would be premature," he said.Trump’s Kashmir boast: The emotional triggerIf China provided the strategy, Trump may have unwittingly provided the spark, the Bloomberg report claimed.Then again, at a US-Saudi investment forum in Riyadh, Trump boasted of brokering the recent India-Pakistan ceasefire following Operation Sindoor-India’s military strikes on terror camps in Pakistan.“I used trade to a large extent to do it,” Trump said, suggesting that economic leverage helped cool tensions in South Asia. “I hope both countries go out and have a nice dinner together.”India was swift — and sharp — in its response.“We have a long-standing national position that any issues pertaining to the Union Territory of Jammu and Kashmir have to be addressed by India and Pakistan bilaterally,” said foreign ministry spokesperson Randhir Jaiswal. He flatly denied any trade discussions in the context of ceasefire talks. “The issue of trade did not come up in any of these discussions.”India didn’t just refute the claim-it used the moment to underline a broader message: strategic autonomy is non-negotiable. Kashmir will not be internationalized. Trade will not be weaponized. And India will not be strong-armed into appearing as a supporting character in Trump’s foreign policy narrative.'Strictly bilateral'Jaishankar on Thursday reiterated India's relations and dealings with Pakistan will be "strictly bilateral", which is a national consensus for many years and there is "absolutely no change" in that consensus."To me things are fairly clear. So, let me take this opportunity to spell out our position. One, where Pakistan is concerned, our relations, our dealings with them will be bilateral, and strictly bilateral."That is a national consensus for many years, and there is absolutely no change in that consensus that dealings with Pakistan will be bilateral," Jaishankar said.On the Kashmir issue, he said, "Only thing that remains to be discussed on Kashmir, is vacation of illegally occupied Indian territory in Pakistan-Occupied Kashmir, we are open to discuss it with Pakistan...the government position is very, very clear."Posture over peace dealsThere’s a subtext running through New Delhi’s recent moves: posture matters. India’s WTO complaint is not just about tariff schedules-it’s about signaling strength.In private, officials say the aim is not necessarily to win the WTO case. It’s to assert that India has leverage and is willing to use it.That leverage includes the ability to diversify away from US-centric trade routes. India has already signed a trade deal with UK. It is also deepening ties with the European Union, pursuing supply chain deals with Japan and Australia, and leaning into the China+1 strategy to reduce exposure to any single partner-especially one that keeps moving the goalposts.Meanwhile, Trump blunders onAgainst this backdrop, Trump’s own trade rhetoric has only added to the tensions. Speaking in Qatar on Thursday, the US President claimed India had offered “literally no tariffs” on US imports as part of a new deal. No details were provided, and New Delhi has made no public acknowledgment of such an offer.Adding fuel to the fire, Trump said he personally urged Apple CEO Tim Cook to avoid expanding operations in India, another Bloomberg report said. “I said I don’t want you building in India,” Trump claimed, saying Apple had agreed to ramp up US production instead.The bigger picture: India’s recalibrationIndia’s trade stance is part of a larger recalibration of its global role. From border tensions with China to balancing ties with Russia, India has emphasized strategic autonomy as its core doctrine.In the Trump era, that doctrine has increasingly collided with Washington’s preference for transactional diplomacy. Trump wants quick wins, visible deals, and loyal partners. Commerce minister Piyush Goyal’s upcoming visit to Washington (May 17–20) will tell us how far India is willing to stretch its tougher stance. Analysts say the WTO filing has already narrowed the path to a quick trade deal.Even if talks resume, New Delhi is unlikely to fast-track any pact unless it favours India, especially in the wake of Trump's claims on brokering a ceasefire between India and Pakistan over Operation Sindoor.(With inputs from agencies)