NextFin news, On October 17, 2025, at the NDTV World Summit held in New Delhi, two prominent former leaders—Rishi Sunak, former Prime Minister of the United Kingdom, and Tony Abbott, former Prime Minister of Australia—voiced their reactions to the United States’ recent tariff imposition on Indian goods. This policy, enacted under the administration of President Donald Trump, who assumed office in January 2025, marks a significant shift in US trade relations with India, a key emerging market and strategic partner.
Rishi Sunak, speaking at the summit, acknowledged the challenges posed by the tariffs but underscored the resilience of India’s trade partnerships, particularly highlighting the recently signed India-UK trade deal as a positive counterbalance. Sunak emphasized the importance of multilateral trade frameworks and cautioned against protectionist policies that could disrupt global supply chains and economic growth. His remarks reflected a nuanced understanding of the geopolitical stakes involved, given the UK’s vested interest in maintaining strong ties with India post-Brexit.
Meanwhile, Tony Abbott characterized the Trump administration’s tariff move as a 'misplayed hand,' describing it as a temporary setback rather than a permanent rupture in US-India economic relations. Abbott’s commentary, reported by the Hindustan Times on October 17, 2025, suggested that while the tariffs introduce short-term friction, they also open avenues for India to diversify its trade partnerships and strengthen regional alliances, including with Australia and other Indo-Pacific nations.
The tariffs, announced earlier in October 2025, target a range of Indian exports, including textiles, pharmaceuticals, and information technology services, sectors that collectively contribute approximately $120 billion annually to India’s export economy. The rationale cited by the Trump administration centers on addressing trade imbalances and protecting American manufacturing jobs, consistent with its broader 'America First' economic agenda.
From an economic perspective, the tariffs risk disrupting a bilateral trade relationship valued at over $150 billion in 2024, with India being the United States’ seventh-largest trading partner. The immediate impact includes increased costs for American importers and potential retaliatory measures from India, which could escalate into a tit-for-tat trade conflict. Such developments may also affect global supply chains, given India’s integral role in pharmaceutical ingredients and IT services.
Strategically, the tariffs complicate the geopolitical calculus in the Indo-Pacific region. India has been a pivotal partner in the Quad alliance alongside the US, Japan, and Australia, aimed at counterbalancing China’s regional influence. Trade tensions could undermine this cooperation, weakening collective efforts on security and economic fronts. Both Sunak and Abbott’s comments implicitly advocate for diplomatic engagement to resolve trade disputes without jeopardizing broader strategic partnerships.
Looking ahead, the tariffs may accelerate India’s push for greater self-reliance under its 'Atmanirbhar Bharat' initiative, encouraging domestic manufacturing and reducing dependency on US imports. Concurrently, India is likely to deepen trade ties with the UK, Australia, and the European Union, leveraging recent trade agreements and regional partnerships to offset US market restrictions.
In conclusion, the NDTV World Summit highlighted critical perspectives from influential former leaders on the Trump administration’s tariff policy towards India. Their insights reveal a consensus that while the tariffs present immediate economic challenges, they also serve as a catalyst for India to diversify its trade portfolio and reinforce strategic alliances. The evolving trade dynamics underscore the need for nuanced diplomacy and multilateral cooperation to sustain economic growth and geopolitical stability in a complex global environment.
According to the Hindustan Times, Tony Abbott’s framing of the tariffs as a 'temporary setback' reflects a broader international sentiment that the current US trade posture may be recalibrated in response to diplomatic pressures and economic realities, especially as the 2026 US midterm elections approach.
Overall, the NDTV World Summit served as a critical forum for dissecting the implications of US trade policy shifts under President Trump’s administration, with Rishi Sunak and Tony Abbott providing authoritative voices advocating for strategic adaptation and resilience in the face of protectionist challenges.
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