The Oxford Dictionary defines liberation as “the act or process of freeing a country or a person from the control of somebody else.” Ironically, Donald Trump's so-called “Liberation Day” tariffs, announced on April 2, have triggered global market tremors, sending indices into the red and unsettling investors’ confidence. With sweeping implications for 90 nations, the reciprocal tariffs threaten to upend global trade, especially for partners like India.

Trump, invoking his “America First Trade Policy” doctrine, claimed that U.S. had been “looted, pillaged, and raped” by its trade partners. His new regime of “reciprocal tariffs” is intended to match foreign duties on U.S. goods—a retaliatory move he deems long overdue.

India, branded the “Tariff King” during Trump’s earlier campaign, finds itself facing a 26% tariff—steeper than Japan (24%) and South Korea (25%), though slightly lower than China’s 34%. The move targets India’s $78 billion worth of exports to the U.S., risking losses of up to $31 billion—around 18% of its outbound trade—according to Emkay Research.

India must urgently devise a counter strategy to tackle the economic jolt triggered by U.S. President, Donald Trump's record-high reciprocal tariffs, announced on April 2, under the banner of his so-called “Liberation Day.” These sweeping measures are set to affect 90 countries and could deal a staggering ₹1,27,000 crore ($1.5 billion) blow to Indian exports, particularly as a 27% tariff—higher than those imposed on Japan and South Korea—targets New Delhi’s outbound trade. Trump excluded Indian pharmaceuticals from tariff which is a silver lining for India as against high tariff on China. As per data, India exported $8.73 billion worth of pharmaceuticals to the United States during 2023-24 which makes it the highest supplier to the US.

India’s Trade Vulnerability and Corporate Exposure;
India’s share of exports to the U.S. stands at $78 billion, forming nearly 18% of its total exports, making this protectionist onslaught deeply consequential. Trump’s return to aggressive nationalism under his “America First” trade doctrine has shaken global markets, with........

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