Dhaka, Aug. 29 -- US President Donald Trump's decision to impose new tariffs on a wide range of imports from India, ostensibly a penalty for buying Russian oil, represents another shock to the international trading system - and a sharp reversal of good relations with Indian Prime Minister Narendra Modi. These tariffs could disrupt the Indian economy, which has benefited immensely from global integration. But the greater risk lies in their potential to influence the country's long-term strategic direction.

To be sure, several factors will mitigate the immediate impact of Trump's tariffs. Despite being India's largest trading partner, the United States is a distant country, and high transport costs have led India to diversify its trade rel...