Tariffs, India’s chance

US President Donald Trump’s latest round of tariffs has hit China hard, throwing global trade into a new phase of uncertainty. But while much of the world is scrambling to manage the fallout, India may have an opportunity to use the crisis to its advantage.

Chinese imports have been slapped with a 145% tariff, and Beijing, in return, has responded with 125%. This is certain to hit the global supply chains. The countries mainly dependent on exports are feeling the pinch. But in the middle of this instability, India has found itself in a position of strength.

Washington’s decision to pause a steep 26% tariff on Indian goods for 90 days is no small gesture. This reflects the importance of India in the US eyes. Also, favouring India relative to China has the potential to set India up as an alternative destination for global businesses. In the new economic scheme of things, American businesses may like to cut their dependency on China,  and look for new sourcing partners. India, with its skilled workforce, growing infrastructure, and expanding manufacturing base, fits the bill.

However, this is less about bidding to replace China in global trade - a prospect that seems still far off in future - and more about a chance for India to reimagine its role in global trade. If we play our cards right, as seems to be the case under the prime ministership of the prime minister Narendra Modi, we can use this moment to push for a better deal from Washington. This can include lower trade barriers, fairer terms, and stronger investment in sectors like electronics, pharmaceuticals, and textiles.

Trump’s tariff moves may have been disruptive, but they’ve also shaken up the old order. For India, it’s a rare chance to move from the sidelines to the center of global trade conversations. And this is very much possible. India’s economy is currently the world’s fifth largest and has been one of the fastest growing in recent years. While tariffs have brought about a worldwide economic disruption, India is best placed to not just overcome it but to turn it into a moment of gaining a bigger foothold in the global economy.