Tariff volatility reshaping global trade, says Jaishankar at JNU summit

External Affairs Minister S Jaishankar cautioned that “trade calculations are being overturned by tariff volatility” in today’s shifting global economy, highlighting how unpredictable tariff regimes and protectionist measures are rewriting traditional trade rules.

Speaking at the Aravalli Summit hosted by JNU’s School of International Studies on Oct 6, Jaishankar pointed out that a significant portion of global manufacturing has consolidated in a singular geography, altering supply chains and risk dynamics.

“A third of global manufacturing has moved to a single geography, with attendant consequences for supply chains,” he observed.

Jaishankar’s remarks come amid growing tensions in India–US trade relations, especially after the Trump administration dramatically raised tariffs on Indian exports to as much as 50%, an escalation that New Delhi has termed “unfair and unjustified.”

He tied this example to broader structural changes underway: the weaponization of trade, tech controls, sanctions, and shifting global alliances.

He also warned of an erosion in national sovereignty due to what he described as tech penetration and manipulation. “Global rules and regimes are being revisited and at times, even discarded,” he said, adding that geopolitical risk is no longer confined to traditional domains of conflict but extends into data, assets, and supply chains.

In his address, Jaishankar underscored that countries must adapt to these changes not by defensive posturing alone but by strategically de-risking exposures while continuing to advance national interests. India, he said, must “calculate and respond” amid volatility.