Page 12 - The Indian EYE 081525

OPINION AUGUST 08, 2025 | The Indian Eye 12

US Tariffs on Indian Goods: Strategic

Implications and Global Ripple Effects

Russia and India
• ...are reinforcing a multipolar glob-
al order.
• If the current tariff-driven trade
fragmentation continues:
• BRICS could emerge as a counter-
force to G7, reshaping trade and
diplomacy.
• Non-Western alliances may ex-
pand, including new members
from Africa, the Middle East, and
Latin America.

H S PANASER
India, China, and Russia — as core BRICS members along with Brazil and South Africaa— are COULD RUSSIA SHUT OFF
n a significant escalation of trade GAS TO EUROPE?
tensions, the United States has increasingly aligned in areas of commerce, defense and technology
Iimposed a 50% tariff on several f geopolitical tensions escalate
— especially over continued
Indian goods, raising existing duties medical supply chains. sistent trade partner due to per- Isanctions or Western support to
by an additional 25%. • Multinational drug companies ceived double standards. Ukraine — Russia may consider halt-
may face delays and price volatil- ing or rerouting natural gas supplies
This decision has wide-ranging ity, harming R&D and consumer DOUBLE STANDARDS? to Europe:
access worldwide.
implications, especially for sec- COMPARING US POLICY ON • Such a move would escalate energy
INDIA, RUSSIA & EUROPE
insecurity in Europe.
tors like textiles, electronics, IMPACT ANALYSIS: he US has criticized India for • It could further solidify Russia’s
and steel. Notably, pharmaceu- WINNERS, LOSERS & continuing to import discount- pivot to Asia, with India and China
STRATEGIC SHIFTS
becoming major energy partners.
tical products — including ge- Ted Russian oil post-Ukraine • This would accelerate Europe’s
war, while Europe has significantly
FOR INDIA:
neric drugs and APIs — are cur- POTENTIAL GAINS: increased its energy imports from shift to alternative energy sources,
but not without short- to mid-term
rently exempt, highlighting the • India may diversify its export base Russia via indirect routes or exemp- economic pain.
tions. At the same time, the US it-
US dependence on India’s drug and strengthen regional trade ties, self maintains non-sanctioned trade CONCLUSION: A PIVOTAL
manufacturing capabilities. especially within BRICS and Glob- channels with Russia, particularly for MOMENT IN GLOBAL TRADE
al South. specific commodities like nuclear fuel REALIGNMENT
• Tariffs might encourage local val- and aerospace materials. he 50% US tariffs on Indian
ue addition and promote domestic This inconsistency:
PHARMACEUTICAL manufacturing. • Weakens US credibility on the goods are more than just a bi-
EXEMPTION: A TEMPORARY global rules-based order. Tlateral economic policy — they
RELIEF POTENTIAL LOSSES: • Pushes emerging economies to are part of a broader geopolitical
question the fairness of US foreign recalibration. As the US selectively
ndia plays a pivotal role in the US • Reduced access to the US market and trade policy. applies trade penalties while main-
healthcare system by supplying for key industries could affect jobs taining exemptions (like pharmaceu-
Inearly 40% of generic drugs used and GDP growth. • Encourages closer ties between ticals) and demonstrates inconsistent
Russia, India, and China, as na-
in the country. Acknowledging this, • Uncertainty in pharma trade may tions seek strategic autonomy from standards on Russian trade, countries
the US has excluded pharmaceuticals strain the $50+ billion pharmaceu- Western-led systems. like India are rethinking their long-
from the new tariffs. However, the tical export industry. term strategic alignments.
Section 232 investigation—focused India’s potential response —
on national security concerns—could FOR THE US: BRICS: A RISING BLOC OF including tariffs on US pharma or
change this landscape. A final re- POTENTIAL GAINS: STRATEGIC COUNTERWEIGHT deeper integration with BRICS
port is expected by December 27, • Tariffs may offer temporary pro- — could reshape global trade dy-
2025, with presidential action due by tection to domestic manufacturers ndia, China, and Russia — as namics, potentially weakening US
March 2026. in selected sectors. core BRICS members — are influence and accelerating a more
If tariffs were imposed on Indian phar- Iincreasingly aligned in areas of multipolar world order.
maceuticals: POTENTIAL LOSSES: commerce, defense, and technolo-
• US healthcare costs may rise due gy. Recent expansions and initiatives H S Panaser is the Chair, Global
to limited access to affordable ge- • Rising consumer costs, particularly such as: Indian Trade and Cultural Council l
nerics. if generics are eventually included. • BRICS currency discussions Consultant: Business Development,
• India could retaliate, potentially • Diplomatic fallout with India, a • Alternative payment systems to Pharmaceuticals, IT, Healthcare and
imposing reciprocal tariffs on US key Indo-Pacific strategic partner. SWIFT AI l EDP I Project Management I Pres-
pharma products, disrupting global • Risk of losing credibility as a con- • Defense collaborations between ident, Global Indian Diaspora Alliance

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