Much of today’s economic pain traces back to President Trump’s escalating trade war. As the US labor market stalls, high tariffs are squeezing both American manufacturers and key trade partners. India, hit with a 50% tariff on its exports to the US since August, faces outsized risks: as India's chief economic adviser warns, these tariffs could shave off 0.5% of India’s GDP and slash $35 billion from exports this year.
India’s government is walking a diplomatic tightrope: experts argue taking direct retaliatory trade action would backfire, given India exports nearly triple the value to America as it imports. Instead, New Delhi is exploring closer ties with Europe, the UK, and even China and Russia to diversify risk—a slow but necessary process. For both US and Indian workers, the human cost is mounting as exporters and manufacturers shed jobs, and the global supply chain adapts in real-time.
