Tariffs or Transformation? Understanding Trump’s bold trade move and what it means for India

US President Donald Trump’s new tariff policy has become a hot topic around the world. Some people praise it as a smart move to protect American workers, while others fear it might hurt the global economy. As someone watching from India, I find this development important—not only for the US, but also for how it might impact countries like ours that are trying to grow while being self-reliant.

Why the US Believes Tariffs Are Necessary

Let’s first look at why the White House thinks tariffs are needed. Officials say that past trade policies damaged the American economy. They share strong data to prove their point: New York has lost 59% of its manufacturing jobs since 1990, and Ohio has lost 35%. These numbers are not just statistics—they reflect real people, towns, and families that have suffered over the years. Job losses have also been linked to serious social problems, such as rising drug use and economic stress. In India, we face similar issues—job shortages and the challenge of protecting local industries while staying open to global markets.

Also read: Trade War Chaos: How the US-China Fight Could Shake Up India’s Future

Trump’s team says the new tariffs are like an alarm bell—a way to wake up America’s factories and restore lost pride. They highlight big companies like Nvidia, Apple, and Hyundai that are now investing heavily in US factories. According to them, this proves that the plan is working. It brings better-paying jobs back home and reduces dependence on other countries for key products. For many Americans, this feels like the country is taking back control of its future. That’s why many support it—a nation that builds things again is a nation on the rise.

Market Panic and Global Responses

However, there’s another side to the story. Even some of Trump’s supporters are unsure about how quickly the tariffs were introduced. The initial announcement created panic in the markets, and the S&P 500 ETF dropped by 5.2% in just one week. The US government later decided to pause the new tariffs for 90 days, showing that they were aware of the risks. Businesses weren’t prepared and had to rush to change their plans. Some US allies expressed concern, and China immediately responded with its own trade measures, raising the risk of a larger trade war.

India’s Own Tariff Experience: A Familiar Dilemma

These fast and unexpected changes caused trouble for small businesses and everyday consumers who faced higher prices. In India, we understand this issue well. For example, we’ve raised taxes on imported electronics to support local manufacturing. While this helps Indian companies, it also leads to higher costs for consumers and sometimes even encourages smuggling.

But the bigger question is this: Can a country become strong by turning inward? Or does it need to stay connected to the global economy? This is not just America’s dilemma—it’s also India’s. Our ‘Make in India’ campaign also aims to build local industries and create jobs. But we have learned that closing ourselves off doesn’t always work. Our success in IT and pharmaceutical sectors happened because we were open to the world. Tariffs might help protect some jobs, but they can also slow down innovation and disrupt supply chains.

India’s Strategic Opportunity Amid US Trade Shifts

The White House says past trade policies were “insane” and wants to do the opposite. But will that truly work better? India needs to watch this experiment closely. If US import prices rise, some businesses may look at India as an alternative. This could be good news for us. However, if global trade weakens, we’ll also face the negative effects. Our textile and apparel exports, for example, depend on foreign markets. A major trade war could hurt them and affect our economy.

Trump’s team recently mocked a CNN reporter for criticizing the focus on manufacturing jobs like those in heating and cooling (HVAC). But that misses the main issue. The debate isn’t just about one type of job—it’s about what kind of future we are building. The US wants to bring back factories, but the world is moving towards new industries like artificial intelligence, green energy, and advanced services. Even if tariffs bring some factories back, will that be enough to prepare workers for tomorrow’s jobs?

Also read: Trump’s Tariff War: Why It’s Hurting Everyone | Opinion

Trump calls this new approach a “beautiful thing.” Maybe he’s right—but beauty often comes with pain. At this point, his tariff policy seems more like a bold message than a clear plan. It’s a way of telling the world to rethink how countries define economic strength. For India, the lesson is clear: we must decide whether to build walls to protect ourselves or build bridges to connect with the world.

There is no easy answer. But whatever path we take, we must choose it carefully—because in a globalized world, one country’s decision can affect us all.

(The author Girish Linganna of this article is an award-winning Science Writer and a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach him, at: girishlinganna@gmail.com)