A global setback

India will need to adjust swiftly to reciprocal tariffs

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American President Donald Trump's "Liberation Day" will go down in history as the most damaging day for globalization in the post-war era. Mr Trump on April 2, as promised, announced sweeping "reciprocal tariffs" against all trading partners. In fact, the tariffs are far more damaging than what most people had expected. This would also be remembered as another momentous event underscoring the American political leadership's desire to relinquish the global leadership, which the world's largest economy and sole superpower has held for decades. The shape and the nature of the global economic and political order will now, to an extent, depend on how other large economies respond to the United States' tariffs. While reactions have been mixed thus far, the actual picture is likely to emerge in the coming days and weeks.