Trump’s Tariff U-Turn: India Inc Holds Breath
Former US President Donald Trump’s last-minute decision to delay the implementation of new tariffs, initially promised on July 26, 2025, has sent ripples of uncertainty through global markets, particularly impacting Indian businesses heavily reliant on US trade. The announcement, made late on July 30, 2025, came as a surprise to many.
Trump’s justification centers on his long-held belief that these tariffs would boost American wealth and create jobs. He maintains that the delay is a strategic manoeuvre to maximize their eventual impact.
However, critics, both within the US and internationally, remain unconvinced. Concerns persist about potential inflationary pressures and the detrimental effects on already strained global trade relations. Legal challenges to the tariffs are also mounting.
The mixed economic impacts are already visible. While some sectors have reported minor gains, others are grappling with increased costs and reduced competitiveness. The delay, however, offers a temporary reprieve.
This situation underscores the significant influence US trade policy wields on the Indian economy. The uncertainty surrounding these tariffs highlights the need for Indian businesses to diversify their export markets and strengthen domestic demand to mitigate future risks stemming from unpredictable global trade dynamics. The coming weeks will be crucial in gauging the long-term consequences of this policy shift.
