BS EDIT: India must respond swiftly to Trump’s tariff shock

By Business StandardPublished On Apr 7, 2025

Global trade under pressure

Trump’s new tariff regime has triggered swift retaliation from China and concern across global markets. Vietnam and Cambodia are offering concessions to avoid deeper impact

Fear of a trade spiral

Economists warn of a potential downturn in global trade, recalling the 1930s protectionist spiral. Escalation could deepen if the EU targets US services

India’s low exposure, high risk

India may face lighter tariffs, but exporters are already seeing demands for steep discounts. The financial system must support firms navigating this shock

Policy action needed

India should ease import barriers, resolve pending trade pacts with the US, and prepare for long-term structural adjustments

EU and UK deals matter

Free-trade agreements with the European Union and Britain must be prioritised to offset risks and diversify trade dependence

The time to act is now

To avoid deeper disruption, India must lead with agility, open dialogue, and strategic clarity in global trade negotiations