Anup Wadhawan, former commerce secretary, downplayed the long-term risks of the 50% US tariffs that came into effect today, August 27. He pointed out that 45% of Indian exports to the US are not affected. He said some adjustments will happen across sectors, with companies shifting supply chains to other countries. “Water basically will flow around barriers. The US has created a barrier, and trade flows will go around the US and find other markets,” he explained.
From the textile sector, Pallab Banerjee, MD and Group President of Pearl Globalhighlighted how the tariffs have come at a sensitive time. He said the business works seasonally and depends on timely deliveries. “The tariff has hit India at a time when the spring-summer goods are being placed by the customers all over the world,” he noted, calling it a challenge for apparel exports to the US.
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Former Indian envoy to the US, Meera Shankar, linked the move to a larger geopolitical strategy. She said the tariffs could be “part of Trump’s geopolitical global play, without a thought to the consequences for the relationship with India.”
Mark Linscott, Senior Advisor at USISPF, said, “That is the big question – when might we see a breakthrough?” He explained that discussions are happening behind the scenes, but the timing remains uncertain. “It could be days, it could be weeks, it’s just hard to say. But for now, the tariffs are in place,” he added.
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While exporters face near-term disruptions, experts believe that global trade flows will rebalance and India’s economy will not see a major setback.
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