Tariffs: Opportunities, Challenges | Photo credit: Franckreporter
On April 2, in a symbolic and dramatic speech in the White House Garden, the president of the United States, Donald Trump, declared the day as “day of liberation”, calling it “one of the most important days in US history” and “our declaration of economic independence.” This marked the formal announcement of radical reciprocal tariffs by the United States, aimed at rectifying commercial practices that contribute to their growing commercial deficit of goods, now excl. $ 1.2 billion.
However, a notable turn arrived on April 11: a 90 -day break in the new rates implementation, except for a baseline of 10 percent, signature room for dialogue. According to the United States Secretary of the Treasury, Scott Besent, the tariff movement was a negotiation liver, mainly aimed at the main Asian commercial partners, including Japan, Vietnam, South Korea and India.
This creates a valuable window for India to say an interim commercial agreement in beneficial mutual terms, that lasts its large domestic market and a growing global influence. With the terms of reference for a bilateral commercial agreement (BTA) already signed, structured negotiations could begin to deliver results in the next six months.
Multiple approach
Import rationalization: Prioritize essential and capital goods; Discourage luxury or non -strategic imports through calibrated rates.
Strengthening of the export ecosystem: Invest in logistics, simplifies compliance and empowers MSME exporters.
Commercial Intelligence: Further strengthens the analysis with AI in real time to anticipate the evolution rate and the risks of NTB.
Credit qualification: Promote finance linked to exports in foreign currency also through banks and NBFC.
Diversity: Expand the Asean, Africa and Latin America focus while the EU, the United Kingdom and Canada accelerate.
The recently promoted races of 25 BPS of Repo of cutting and review of the GDP prognosis down in 20 BP reflect a cautious macro posture. But the true strength of India lies in agility, responding not with reprisals, but with strategic negotiation and internal capacity construction.
The global commercial order is not collapsing, it is restored. For India, this is not a moment of interruption, but nor the opportunity to lead the answer, diversify intelligently and trade strategically.
The writer is a consultant/managing director and human resources – NBFC/retired banker
Posted on April 17, 2025