Tackling Trump's Tantrums

The US president's U-turn on tariffs offers short-term relief and just about enough time for India to figure out its best course of action

- Pushpita Dey

In the early hours of April 2, RK Jalan, founder of industrial safety shoes company AFPL Global, was at his home in Kanpur, keenly following US President Donald Trump's announcement on reciprocal tariffs. Until the end, Jalan says, there was a faint hope that friendly diplomatic ties between the two countries would spare India the worst of the new tariffs.

What followed stunned not only Jalan, but other leather exporters who had pinned their hopes on the speech.

“We were expecting a tariff of around 15%. But 26% is very high,” says Jalan.

Indeed, exporters across a spectrum of industries that are heavily reliant on the US market share Jalan’s sentiment. Narendra Kumar Goenka, founder and managing director of Texport Industries, an apparel manufacturer, warns that a 26% duty on exports could prove fatal for his sector.

In the leather industry, “the imposition of reciprocal tariffs has sent shockwaves. Orders are being put on hold and buyers are negotiating for rate reductions or seeking compensation for the tariff impact”, says Puran Dawar, founder Agra Footwear Manufacturers and Exporters Chamber.

Then, on April 9, the US president announced that he was shelving plans to hike tariffs on all countries, except China. Exporters welcomed the 90-day reprieve, but the news was shrouded in uncertainty over the impact that changing tariff policies would have on global trade—raising the question, how can India tackle Trump’s tariffs?

Banking on BTA