BS EDIT: Trump’s tariffs: A global shift, a test for India

By Business StandardPublished On Apr 4, 2025

A blow to globalisation

Trump’s April 2 move marks a rupture in post-war global trade consensus. The “Liberation Day” tariffs signal America’s retreat from its long-held role as a free trade champion

The numbers speak volumes

A 10 per cent blanket tariff kicks in from April 5, followed by steep country-specific duties on April 9—27 per cent on India, 46 per cent on Vietnam, and 54 per cent on China

A flawed logic, a risky path

Trump’s view that tariffs fix trade deficits has little backing from economists. Any short-term current account gains may be erased by a stronger dollar and falling exports

India’s short reprieve

India’s pharmaceutical exports are spared for now, and its 27 per cent tariff is lower than others’. But this advantage could be fleeting as bilateral talks unfold

Strategic recalibration needed

India must reduce its own tariff walls and move faster on trade pacts with the US, EU, and UK. Access to global markets depends on strategic agility

From disruption to opportunity

The shake-up is real. But with timely reform, India can convert global trade chaos into competitive gain—and shape a new trade narrative for itself