- The tariff terrorism unleashed by the maverick and extremely unpredictable president of the United States of America, Donald Trump, has commenced around the globe, causing envisaged widespread disruptions in the way the established world order functions. The economic fallout of the measures initiated by Trump vis-à-vis reciprocal tariffs is bound to create tremendous upheaval around the globe. This is being vouched unequivocally by the finance wizards and economic experts with several predicting the USA going into recession. In playing to the local gallery of loyalists, Trump has unwittingly perpetrated economic terrorism that will be resonating for quite some time. How can India salvage the situation by tapping into the hidden opportunities?
PC: The New Indian Express
- Despite Prime Minister Narendra Modi assuring Trump about a conciliatory reduction in tariffs, the USA has proceeded to impose a 27% tariff on Indian goods. Of course, China is a formidable country in its own right and has gone ahead to impose a retaliatory 34% tariff on American products. The war has just begun and will get ugly in the coming months. The retaliatory tariff will only make things more expensive and harder to buy and sell. Since the USA and China are the two biggest buyers and sellers in the world, their fight is making everyone else worried – including India. Thankfully, India is not as badly affected as China, but it could still lose a lot of money from exports (selling goods to other countries).
PC: Mint
- Moreover, many experts think this fight could lead to a global recession – a time when businesses slow down, jobs disappear, and people have less money to spend. If this happens, it would be tough for India because our economy is already struggling. There is always a silver lining, though, isn’t it? There is always a way forward, too. The US wants another big trading partner besides China. India can’t compete in high-tech areas like artificial intelligence and computer chips, but we have something valuable – lots of workers who can make things at a lower cost. The problem? Our factories are small compared to China’s. If India wants to become a big manufacturing hub, we need to build large industrial areas across the country, not just in a few states.
PC: DW
- We must trade with more countries, not just the US. Even though China is our competitor not only in the Asian neighbourhood but also globally, the superpower China cannot be neglected for all its worth. It makes prudent economic sense to keep good relations with China going on despite both countries having an eyeball-to-eyeball confrontation along the Eastern borders. As such, some of the moves at the top leadership levels are already indicating a thaw in the relationship quotient between the two Asian giants. India has a chance to grow if smart moves are made now. The government needs to act fast by building factories and making new trade deals to stay strong in this fast-changing world. Opportunities during adversities should be explored to the fullest.
