Will Trump's Tariff Strategy Fail Against India's Market?
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Synopsis
As the US prepares to implement a 25% tariff on Indian goods, former diplomat Deepak Vohra asserts that Trump's pressure tactics will not work in India. Vohra emphasizes India's robust internal market's capability to stabilize the situation, offering insights into the changing dynamics of international trade relations.
Key Takeaways
- India's internal market is substantial and resilient.
- Tariffs may lead to temporary fluctuations.
- India's economic confidence has grown significantly.
- Trump's strategy may not yield long-term results.
- Government prioritizes the welfare of various stakeholders.
Indore, July 31 (NationPress) In light of significant concerns raised by market analysts regarding the effects of the 25% tariffs introduced by the US effective from August 1 on Indian exports, former Indian diplomat Deepak Vohra expressed on Thursday that President Donald Trump's "pressure tactics" are unlikely to succeed in India.
While visiting Indore, the economic hub of Madhya Pradesh, Vohra suggested that while there might be some short-term effects, India's vast market is equipped to restore stability effectively.
"Predictions vary as the future is uncertain, but I am confident that India's internal market is substantial and has the capability to stabilize itself. There might be fluctuations for a few days, but I anticipate a return to normalcy," Vohra noted in his discussion with IANS.
Regarding Trump's imposition of tariffs on Indian products, Vohra commented that the US President has historically adopted an "off-balance" approach in international trade negotiations, which he believes will not be effective against India.
"Today's India is not the same as it was 30 to 40 years ago. India is now confident and proactive. We rank as the fourth largest economy and possess a significant market. Trump's strategy will falter here over time. If India chooses to reduce imports of US goods, it will have repercussions for the US as well," he added.
He also pointed out that in recent months, Trump has been treating Pakistan like a "darling," yet the global community understands Pakistan's true position.
Vohra characterized Trump's tariff announcement as a blend of strategic economic objectives and geopolitical maneuvering.
Meanwhile, Union Commerce Minister Piyush Goyal informed the Lok Sabha on Thursday that the government is assessing the repercussions of these developments.
He mentioned that the Ministry of Commerce and Industry is consulting with exporters, industrialists, and all relevant stakeholders to gather their insights regarding the situation.
"The government prioritizes the welfare of farmers, laborers, entrepreneurs, industrialists, exporters, MSMEs, and all stakeholders in the industrial sector. We are committed to taking all necessary measures to protect our national interests," Goyal stated.
Point of View
I believe that the Indian market's resilience is a crucial factor in global trade dynamics. While tariffs may create temporary disruptions, India's internal strengths will ultimately prevail. It is essential for our government to prioritize national interests while navigating these challenges.
NationPress
21/09/2025
Frequently Asked Questions
What are the implications of Trump's tariffs on India?
The tariffs may cause short-term disruptions, but experts believe India's large internal market can stabilize the situation effectively.
How does Deepak Vohra view the situation?
Vohra is confident that Trump's pressure tactics will not work against India's robust economy, which is now more assertive than in previous decades.
