EAM Jaishankar warns of tariff volatility, flags rising anti-globalisation sentiment

External Affairs Minister S Jaishankar said on Monday that trade calculations are being overturned by "tariff volatility" globally, citing economic disruptions related to US President Donald Trump's policy on trade tariffs.

Jaishankar highlighted the "strategic consequences" of significant shifts in the geopolitical landscape, such as the relocation of one-third of global manufacturing to a single region.

"Consider the global landscape now and let us reflect on the intensity of the transformation and its implications. A third of global manufacturing has moved to a single geography, with attendant consequences for supply chains," news agency PTI quoted EAM Jaishankar's address at the first Aravali Summit hosted by Jawaharlal Nehru University's School of International Studies.

"There is rising anti-globalisation sentiment in many societies. Trade calculations are being overturned by tariff volatility," he said, hinting at Washington's policy on tariffs.

The external affairs minister's comments on tariff volatility come after Trump raised tariffs on Indian goods to a substantial 50 per cent, which includes a 25 per cent extra duty for India's imports of Russian crude oil.

"The global energy scenario has changed profoundly with the US becoming a major fossil fuel exporter and China a key renewable one. There are competing models on the harnessing of data and evolution of Artificial Intelligence, which jostle with each other," Jaishankar said.

Concerns over erosion in sovereignty

Jaishankar also voiced worries about an “erosion in sovereignty” due to what he described as “tech penetration and manipulation.”

“Global rules and regimes are being revisited and at times, even discarded. Cost is no longer the defining criteria for economic transactions; ownership and security are equally so,” he said.

"Cumulatively, the world is witnessing more competition and less compacts. The needle has shifted towards an intersection of interests and away from the promise of cooperation," Jaishankar noted.

Jaishankar stated that while most countries are preoccupied with managing their issues or safeguarding their interests, India must develop strategies and keep advancing amid such instability.

"This is by no means a defensive stance. 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.

(With inputs from agencies.)