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COVER STORY AUGUST 08, 2025 | The Indian Eye 4

TRUMP’S TARIFF TURBULENCE

INDIA STAYS

CALM

As Donald Trump’s 25% tariff hammer falls on Indian goods, New Delhi is crafting a mix of

resilience, recalibration, and realpolitik to weather the storm—and perhaps, even emerge stronger

OUR BUREAU

New Delhi | Washington, DC
he second Trump presidency’s
tariff barrage has triggered
Talarms across global markets.
For India, slapped with a 25% tar-
iff plus an additional penalty for its
continued oil trade with Russia, the
challenge is steep. But the response
is not panic—it’s pragmatism. In-
dia’s policymakers, business leaders,
and exporters are calibrating a multi-
pronged counterstrategy that com-
bines diplomatic negotiation, trade
diversification, and internal economic
resilience to withstand what some are
calling the “Trump Tariff Tsunami.”
At the heart of India’s strategy
is a calculated calm. Ministry of Ex-
ternal Affairs (MEA) spokesperson
Randhir Jaiswal’s response was tell-
ing: “We have taken note of the sanc-
tions, we are looking into it.” Behind
the diplomat’s stoicism lies a complex
reality: the US is India’s largest trad-
ing partner, accounting for over $120
billion in annual bilateral trade. But
India is no pushover. The country’s
growing economy, its record forex
reserves, and its strategic importance Opposition MPs hold protest over issue of US tariffs on India at the Parliament house on Friday (ANI)
to the West—especially in tech, phar-
ma, and defence—make it harder
for Washington to treat India like a SHORT-TERM PAIN, co, and even Canada have all been economies. But the fallout extends
transactional partner. LONG-TERM PIVOT targets. Ostensibly aimed at correct- globally. European steel, Canadian
Commerce Minister Piyush ing trade imbalances and reviving aluminum, Indian pharmaceuticals,
Goyal struck a confident tone in onald Trump’s global tariff domestic manufacturing, the tariffs and even Japanese cars have faced
Parliament: “The Government war, reignited in his second have triggered retaliatory measures, higher duties. Trump’s transaction-
gives utmost priority to the welfare Dpresidency, marks a return fractured global supply chains, and al style turns trade into a weapon,
of farmers, labourers, MSMEs and to aggressive economic nationalism. unsettled markets. linking tariffs to issues like defense
exporters... Aatmanirbharta ki ore Built on the “America First” doctrine, China remains the primary bat- spending, immigration, or geopoliti-
Bharat aatmavishwas se badh raha Trump’s strategy involves slapping tlefield. Trump’s imposition of hun- cal allegiance.
hai.” Translation: India is ready to steep tariffs—often unilaterally—on dreds of billions in tariffs on Chinese While the U.S. economy has seen
meet this head-on with self-belief and allies and adversaries alike. India, goods has fueled a prolonged de- short-term manufacturing bumps,
structural strength. China, the European Union, Mexi- coupling of the world’s two largest Continued on next page... >>

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