Page 51 - Banking Finance May 2025

ARTICLE

India's Global

Moment: Rising

Amid Tariffs and Brijesh Kumar Shukla

Chief Manager
Trade Tensions Union Learning Academy

Hyderabad

The global economy is undergoing a significant shift, with protectionism re-emerging as a dominant
force. Led by the United States, a fresh wave of tariffs is disrupting global trade. U.S. President
Donald Trump's recent move to raise tariffs on imports from 57 countries signifies a pivotal turn in
this evolving narrative.

Introduction harming industrial workers; repeal spurred industrial
growth.
The global economy is undergoing a significant shift, with
protectionism re-emerging as a dominant force. Led by the Opium Wars (China-UK): Coerced trade led to long-term
United States, a fresh wave of tariffs is disrupting global economic and political imbalance.
trade. U.S. President Donald Trump's recent move to raise McKinley Tariff (USA, 1890): Raised costs and provoked
tariffs on imports from 57 countries signifies a pivotal turn retaliation, showing the dangers of excessive
in this evolving narrative. While many nations are bracing protectionism.
for impact, India finds itself uniquely positioned to turn this Smoot-Hawley Tariff (USA, 1930): Deepened the Great
disruption into a strategic advantage. Depression as global trade shrank by 65%.
Pasta War (1985) & Banana War (1993-2012):
Backed by the Aatmanirbhar Bharat vision, a skilled
Highlighted how even narrow disputes can escalate
workforce, infrastructure development, and growing trade
trade tensions.
networks, India could emerge as a key beneficiary in the
Bush's Steel Tariffs (2002): WTO pushback and
global reordering of supply chains.
domestic repercussions forced a policy reversal.
Historical Context: Lessons from Tariff
Key Insight:
Conflicts Tariff wars tend to harm global growth and cooperation,

Tariff wars have long impacted global economic relations: often leading to unintended consequences for all parties
Corn Laws (UK, 1815-1846): Raised food prices, involved.

46 | 2025 | MAY | BANKING FINANCE