The US has sharply increased tariffs, signaling a shift away from globalisation. As trade barriers rise globally, India has a key opportunity to boost its role in global value chains. These changes, reminiscent of past trade wars, highlight the urgency for India to act now and capture supply chain shifts.

BulletsIn

• US raised tariffs from 2.3% to 23% recently
• Tariffs now higher than 1930s Smoot-Hawley levels
• Marks a major retreat from globalisation by the US
• Immigration curbs also tighten US trade posture
• Global firms may now shift supply chains from China
• India seen as strong alternative due to low costs
• Geopolitical shifts favor India as manufacturing hub
• Urgency grows: window for India may close soon
• Policy reforms needed to attract global investment
• India must act fast or miss the global reshuffle