“U.S. President Donald Trump’s Reciprocal Tariff Policy will have a short-term impact on India, more political than economic,” Registrar of Central University of Karnataka R.R. Biradar has said.

Prof. Biradar was delivering a special lecture on “Politics of Protectionism: How Trump’s Tariffs Affect Indian Economy?” organised by the Department of Business Studies, Central University, here on Tuesday.

Prof. Biradar noted that India’s share in U.S. imports stands at just 2.8% and the U.S. has one of its lowest trade deficits with India.

“The major objectives of the U.S. trade policy under President Trump are to promote fair and balanced trade, protect American industries and jobs, reduce trade deficits, use tariffs as negotiation tools and realign global trade partnerships,” he said.

Elaborating on the possible implications, he observed that U.S. tariffs, raised from 10% to 50%, can affect export-oriented industries such as gems and jewellery, textiles, leather, marine products, automobiles and steel.

“This may reduce export competitiveness, investment and employment and can lower India’s GDP by up to one percentage point. However, India’s strong domestic market, rising consumer confidence and lower GST rates will help cushion the impact,” he added.

Earlier, Head of the Department of Business Studies Mohammad Zoahir said that the world was once pushed toward liberalisation under the 1991 New Economic Policy, but countries that championed globalisation are now turning protectionist.

“President Trump’s policy is a reminder that globalisation is increasingly being redefined by national interests,” he remarked.

Dean of School of Business Studies Panduranga V. Patti urged students to stay updated with global economic developments to face future challenges.

Faculty members A.N. Vijayakumar, Ganapati B. Sinnoor, Sushma, Safia Parveen, Shivakumar Belli, Suma Scaria, Jaipal and Kavita Sangolagi, along with students, attended the event.