‘No longer only about trade’: Market expert says all the countries must now play Trump’s ‘tariff game’

Market and investor expert, Ajay Baja, said that India should look inward to find a solution to the traditional deal with the United States. He said that with the tariff card on the table, all countries must play the same game. India cannot rely on unexpected external demand. He said that India should polish its policies to enhance local consumption.

He said in a series of posts on social media: “For India, the real risks are not just a tariff – it is the effect of ripples on the CAD (current account deficit), currency, consumption and job growth.

With customs tariffs such as “diplomacy, hegemony and deals” tools, this is no longer only related to trade. “It is about rewriting the rules of globalization,” he said.

He added: “The countries of the game – or risk playing by playing. The United States and China are the dominant players. The rest of the countries are trying to be players, not pawns. India has achieved well, but it will need to raise its action now.”

He said that India’s ambition to become a $ 10 billion economy must also be treated in a world of customs tariffs, fragmentation and supply chain. This leaves with India the only option to enhance local growth.

“The Trump tariff of 25 percent is a reminder: the external demand is unexpected. India now must go to local consumption as a basic growth engine. A $ 4.2 trillion economy with 1.4 billion consumers is our greatest chance,” said Baja.

He said that India needs the following to enhance local consumption:

• Rationalization of commodity and services tax, fuel cost reduction
• Direct tax exemption for the middle class
• Faster in rural infrastructure
• Credit MSME targeted
• Ltcg and STCG cuts to launch a wave of optimism in the markets

Baja said the government can not only achieve more when investors make more gains. He added: “The incentive for the application must be loaded, not a delay.”

India should not only aim, but rather proactive to achieve 8 percent growth of GDP. Demographic winds will fade by 2040, and therefore India has a narrow window to achieve its workers’ skills, create job opportunities, and increase urban productivity.

He said: “India must look at Trump’s tariff not only as commercial threats – but as pressure on economic reset. Strategic cancellation, diversification of trade, and export support can reset the position of India as a reliable alternative to China.”

Bagga also suggested the keys to the Trump Age’s tariff:

• Recent touches on free trade agreements (UK, European Union, Gulf Cooperation Council)
• Expand trade and barter deals
• Invest in export infrastructure
• Negotiating the arrival of the service sector

Baja said that India’s ambition to become an economy of $ 10 trillion by ensuring balanced growth through consumption, capital expenses and exports, but no one sector can maintain this growth alone.

To increase consumption, the government must focus on reducing the indirect tax burden on low -income families. This includes simplifying the tax and services tax (GST), lowering the tax panels of basic commodities, and compliance requirements for small companies. These measures will help keep the demand without discoloration.

Despite the weakest global economic conditions and the high geopolitical risks, India should rely on internal drivers such as reforms, improve productivity, and trust -based growth, Baja said.