Jaishankar highlights impact of US tariff policy and global manufacturing concentration
External Affairs Minister S. Jaishankar on Monday said that global trade and supply chains are being disrupted by “tariff volatility,” as nations increasingly weaponise trade policies to protect their interests. His remarks come amid economic turbulence following Washington’s recent tariff hikes on Indian exports.
Speaking at the inaugural Aravali Summit hosted by Jawaharlal Nehru University’s School of International Studies on its 70th anniversary, Jaishankar discussed how shifting economic and geopolitical alignments are reshaping the world order.
“Consider the global landscape now and let us reflect on the intensity of transformation and its implications,” he said. “A third of global manufacturing has moved to a single geography, with attendant consequences for supply chains. There is rising anti-globalisation sentiment in many societies. Trade calculations are being overturned by tariff volatility.”
While he did not name the United States directly, his comments came against the backdrop of U.S. President Donald Trump’s decision to double tariffs on Indian goods to 50%, including a 25% surcharge linked to India’s purchase of Russian crude oil.
Jaishankar highlighted how the world’s economic architecture has evolved dramatically, noting that the U.S. has become a major exporter of fossil fuels while China leads in renewable energy. “There are competing models on the harnessing of data and evolution of Artificial Intelligence which jostle with each other,” he added, referring to the growing influence of Big Tech on geopolitics.
He also cited the emergence of new connectivity routes with strategic goals, tightening technology controls, and fierce competition for rare earths and critical minerals. “The quality of weaponry and the nature of war itself have been transformed, making it more stand-off, more impactful, and definitely more risk-prone,” he observed.
Jaishankar warned that sovereignty itself is being eroded by “tech penetration and manipulation,” as global rules and regimes are “being revisited and at times, even discarded.” He said the cost of transactions was no longer the main factor in trade; ownership and security concerns now play equal roles.
“Cumulatively, the world is witnessing more competition and fewer compacts,” he said. “The needle has shifted towards an intersection of interests and away from the promise of cooperation. It is driven by the weaponisation of everything, with less inhibition to use available tools.”
The minister emphasised that India must navigate this “volatile and risk-prone” environment strategically. “We have to safeguard our interests and yet continuously advance up the global hierarchy. We have to de-risk our exposures and engagements and yet, take risks when necessary,” he said.
Responding to a question from a student about whether India’s foreign policy is “agnostic or independent,” Jaishankar replied, “To some extent, both.” He said India’s choices have always been guided by national interest. “Even today, when countries cite great principles of international law, I ask—where were you when that principle applied to me? National interest comes above everything else.”
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