Mains Answer Writing - 23 Aug, 2026

GS2

Economy

10 marks

The escalating US–Canada tariff conflict reflects the growing weaponisation of trade among major economies. Examine its implications for India and the opportunities it creates for Indian trade.

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Tips for your answer

Explain trade diversion - tariffs make Canadian products costlier in the US, potentially allowing competitive third-country suppliers such as India to gain market share.
Remember the 50% US tariff, roughly $20 billion of affected Canadian goods, Canadian retaliatory tariffs and the broader threat to North American trade integration.
Do not assume the trade war automatically benefits India. Distinguish sector-specific export opportunities from wider risks arising from protectionism, weaker growth and supply-chain disruption.

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