Trump’s Tariff Offensive – Global Trade Realignment in 2026

President Trump’s aggressive tariff policy; 25% on China, threats of 10–20% universal tariffs and demands for reciprocal trade is forcing a massive realignment in global supply chains.

India is emerging as one of the clear beneficiaries. China+1 strategies have accelerated, with several US and European companies shifting electronics, auto components, textiles, and pharmaceuticals sourcing to India. Defence and aerospace offsets are also expanding rapidly.

However, risks remain. If universal tariffs are imposed, Indian exporters could face higher barriers in the US market. The government is responding with aggressive FTA negotiations and PLI scheme expansions.

For Indian manufacturers, the next 12–18 months represent a historic window. Those who invest in quality, scale, and US/Europe market access now will gain structural advantages for the next decade.