US President Donald J Trump’s decision on April 2, 2025, to declare a national emergency, imposing reciprocal tariffs to address unfair trade practices, will not just reshape global trade and supply chains but also have an impact on manufacturing sectors across the world. Beginning April 5, 2025, the US will impose a baseline tariff of 10 per cent on goods from all countries, followed by individualised reciprocal tariffs effective April 9, 2025, targeting countries with substantial trade deficits, notably China.

This tariff tirade is a direct response to nearly three decades of China’s exploitative trade behaviour, characterised by market manipulation, unfair subsidies, technology theft, and protectionist policies, undermining free trade principles and prompting retaliatory measures from traditionally free-trade-advocating nations like the United States. This will lead to a shift of Chinese exports from the US to other countries and will lead to massive dumping not only by China but also by other countries into Indian markets. China has evaded tariffs in the past by going through FTA nations as jump points for its exports. Chinese imports into India came via Singapore. Now, these FTA nations will become conduits for surreptitious Chinese dumping.

Historically, Brazil and India have implemented tariffs for various reasons, ranging from protecting domestic industries to balancing trade deficits. India’s high tariffs on passenger vehicles—up to 70 per cent compared to America’s 2.5 per cent—originated to prevent cheap vehicle imports from Malaysia, South Korea, and China from overwhelming local markets. American automobiles have historically struggled to penetrate the Indian market due to perceptions about reliability, fuel efficiency, and compatibility with Indian consumer preferences, even when produced domestically.

Brazil’s 18 per cent tariff on ethanol, significantly higher than America’s 2.5 per cent, is designed to protect its robust domestic biofuel sector, which is critical for national energy security and agriculture. Similarly, China’s tariffs and non-monetary barriers stem from its broader economic strategy to boost exports, maintain employment,........

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