THE TIMES THEY ARE A-CHANGIN'

Donald Trump's trade tariffs will rewire the way the world operates. How India deals with the challenges and the opportunities will shape its future

- K. SUNIL THOMAS

Fourth of July is America's equivalent of August 15— Independence Day. But while India does have a 'Liberation Day' (though only for Goa to commemorate its liberation from the Portuguese), and many other countries have one to celebrate their victory in World War II, the US never had a Liberation Day. Until now.

“April 2nd is Liberation Day in America,” Donald Trump declared, setting it as the date he will announce sweeping reciprocal tariffs on nations he said were taking America for a ride with import restrictions. “I didn't want [it] to be April Fool's Day because then nobody would believe what I said,” the mercurial president quipped.

Nobody is taking it as a joke. In just two months in his second term, Trump has opened pandora's box, announcing tariffs on China, setting steep duties on imports from neighbours Mexico and Canada (presently on hold) and threatening to slap all its trading partners with reciprocal tariffs.

This includes India, Narendra Modi's bearhug or not. In fact, India is in Trump's crosshairs—he called it a 'big abuser' of tariffs and 'tariff king.' And any action taken in Washington on this front will have an effect not just on India's trade and business, but right down to anyone from a middle-class homemaker balancing her grocery budget to the farmer toiling under the summer sun.

“For the common man, this can translate into variability in job markets, price shifts of day-to-day items, and possible variations in export-based industries,” said Vishal Sarin, economist and dean, Lovely Professional University.

DEAL YA NO DEAL