Image Credit: DrSJaishankar
EAM Jaishankar Warns of Tariff Volatility
External Affairs Minister S. Jaishankar cautioned on Monday that global trade “calculations are being overturned” by rampant tariff volatility, pointing specifically to recent U.S. policy shifts. He stressed that India must be bold, saying it needs to “de-risk our exposures … and yet take risks when necessary.”
Tariff Volatility and Its Impact
Jaishankar remarked that the sudden changes in trade rules have unsettled assumptions held by exporters and nations alike. He noted that one-third of global manufacturing has shifted to a single region, altering supply chains and intensifying risks for countries dependent on stable trade regimes.
He also flagged a rise in anti-globalisation sentiment across societies, suggesting that countries are increasingly reacting to tariff swings with skepticism toward open trade. The minister argued that India must strategise to adapt to this evolving landscape.
India’s Strategic Response
Urging balance, Jaishankar emphasized that India should simultaneously de-risk from excessive dependence while remaining aggressive in pursuing opportunities. He described interdependence as both a stabiliser and a vulnerability, meaning India must manage exposure along with growth.
Analysts view his remarks as signaling India’s approach in U.S.-India trade talks, especially after Washington imposed additional tariffs on Indian goods earlier in 2025. The speech suggests India is preparing to work within a volatile trade environment rather than relying on predictable rules.
